Alphabet CEO’s Pay Rises to $226 Million on Huge Share Price

(Bloomberg) — The pay package awarded to Alphabet Inc. Chief Executive Sundar Pichai rose to $226 million in 2022, boosted by a three-year stock grant, making him one of the world’s highest-paid corporate executives.

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The stock award portion of his salary totaled $218 million, according to a filing by Google’s parent company on Friday. He received a total of $6.3 million in compensation in 2021, when he did not receive the grant, and his salary has remained steady at $2 million over the past three years.

The 50-year-old CEO has navigated a more competitive industry, with AI products such as chatbot ChatGPT from startup OpenAI threatening to undermine Google̵[ads1]7;s dominance in search. A broader tech downturn has also taken a toll on the company, with shares falling 39% in 2022. Still, they’ve staged a comeback in 2023, up 19%.

Pichai’s stock award comes on a three-year plan, and he received a similar-sized package in 2019. That year, the executive was awarded $281 million.

CEO compensation has become a particularly touchy subject in the tech industry — especially after a wave of layoffs at Alphabet and other big companies. Apple Inc. CEO Tim Cook cut his salary for 2023 after being angered for earning $100 million in each of the past two years.

Pichai’s package put him well above other Alphabet executives in 2022. Prabhakar Raghavan, Google’s senior vice president of knowledge and information, and Philipp Schindler, chief business officer, both took in about $37 million. Chief Financial Officer Ruth Porat’s compensation was $24.5 million. Their share grants are issued on an annual basis.

In January, Alphabet began cutting about 12,000 jobs, or 6% of its global workforce, after months of other measures to reduce expenses and set new priorities. Median total compensation for Alphabet employees was $279,802 in 2022, according to the filing. Pichai’s compensation was 808 times that amount.

As part of his compensation package, Alphabet spent $5.94 million on personal security for Pichai, according to the filing.

(Updates with more from submission in seventh paragraph.)

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