Four top executives at Google are getting hefty pay raises in 2022 of at least $350,000 plus stock and bonuses according to a filing with the SEC.
On December 28, 2021, the Leadership Development and Compensation Committee of the Board of Directors of Alphabet Inc. (Google’s parent company) approved a new compensation arrangement for members of its senior executive team for 2022, including the following executive officers: Ruth Porat, Chief Financial Officer of Alphabet and Google; Prabhakar Raghavan, Senior Vice President, Google; Philipp Schindler, Senior Vice President, Chief Business Officer, Google; and Kent Walker, President, Global Affairs and Chief Legal Officer of Alphabet and Google.
Effective January 2022, the base salaries of each of Ms. Porat, Mr. Raghavan, Mr. Schindler, and Mr. Walker will be increased from $650,000 to $1,000,000.
Ms. Porat, Mr. Raghavan, Mr. Schindler, and Mr. Walker are all eligible to participate in a maximum $2,000,000 annual bonus program, based on contributions to Google’s performance against social and environmental goals for 2022. Actual bonus payouts will be reduced if target performance is not met.
In addition, the Board approved equity awards, which are expected to be granted on January 5, 2022, to each of Ms. Porat, Mr. Raghavan, Mr. Schindler, and Mr. Walker.
•Ms. Porat will be granted one tranche of performance stock units (“PSUs”) with a target value of $5,000,000, and one tranche of restricted stock units (“GSUs”) in the amount of $18,000,000.
•Mr. Raghavan will be granted one tranche of PSUs with a target value of $12,000,000, and one tranche of GSUs in the amount of $23,000,000.
•Mr. Schindler will be granted one tranche of PSUs with a target value of $12,000,000, and one tranche of GSUs in the amount of $23,000,000.
•Mr. Walker will be granted one tranche of PSUs with a target value of $5,000,000, and one tranche of GSUs in the amount of $18,000,000.
The target number of PSUs will be calculated by dividing the target value by the average closing price of Alphabet’s Class C capital stock during the month of December 2021 (the “Average Closing Price”). The PSUs will vest, if at all, based on the Total Shareholder Return (“TSR”) performance of Alphabet relative to the companies comprising the S&P 100 over a 2022-2024 performance period, subject to continued employment. Depending upon performance, the number of PSUs that vest will range from 0%-200% of target. Upon vesting, each PSU will entitle the grantee to receive one share of Alphabet’s Class C capital stock.