According to Alphabet’s most recent report, CEO Sundar Pichai of Google earned a staggering $226 million in 2022. From Pichai’s $6 million compensation in 2021 to his $7.4 million salary in 2020, this is a big increase. In addition to a base income of $2 million and more than $5 million for private security, Pichai’s earnings were primarily made up of stock holdings worth more than $218 million.
None of the other top Google execs received salaries that even came close to Pichai’s in 2022. Prabhakar Raghavan, senior vice president, and Philipp Schindler, chief business officer, each received $37 million, while Ruth Porat, chief financial officer, and Kent Walker, chief legal officer, each received about $24.5 million.
Alphabet has declared its intention to eliminate 12,000 positions, or 6% of the whole staff. Pichai’s pay is more than 800 times greater than the typical wage at Alphabet, which is just under $280,000.
The discussion about soaring CEO salaries has been revived in response to Pichai’s exorbitant pay. According to research by the Economic Policy Institute, CEO pay has climbed by 1460% since 1978 and now accounts for more than 80% of executive remuneration. The majority of economic growth gains are going to the top 1% and 0.1%, according to the report’s authors, and this tendency is causing the wealth gap to deepen.
Tim Cook, the CEO of Apple, recently came under fire for making $100 million in 2021 and 2022. Cook responded by lowering his 2023 salary by 40%. 75% of Cook’s 2022 salary was based on the value of the company’s shares, which accounted for the majority of his earnings.
Apple’s compensation committee said that Cook sought the reduction in pay in light of shareholder criticism, despite the fact that the vote to reject Cook’s compensation package was not legally binding. In a similar spirit, it’s critical for businesses to take into account the effect that CEO compensation packages have on the overall economy and to hold leaders accountable for them.
Read also: Beyond Profits: The Role of Empathetic CEO Leadership in Building Successful Companies
Sundar Pichai
Sundar Pichai is the CEO of Google and its parent company, Alphabet. Born in Madurai, India in 1972, Pichai obtained his Bachelor’s degree in Metallurgical Engineering from the Indian Institute of Technology, Kharagpur. Later, he earned his MS in Material Sciences and Engineering from Stanford University, followed by an MBA from the Wharton School of the University of Pennsylvania.
Pichai began his career as an engineer at Applied Materials before joining McKinsey & Company as a management consultant. In 2004, he joined Google as a product manager, where he worked on various projects such as Google Toolbar and Google Chrome. Pichai became widely known for his leadership of the Chrome project, which eventually became the world’s most popular internet browser.
Over the years, Pichai worked on various projects at Google, including Google Drive, Google Apps, and Google Maps. In 2013, he was appointed the Senior Vice President of Android, and he oversaw the development of the Android operating system. In 2015, he was promoted to CEO of Google, following the restructuring of the company, which saw the creation of Alphabet, Google’s parent company. Pichai also became the CEO of Alphabet in December 2019.
Expansion of Google
Under Pichai’s leadership, Google has continued to grow and expand its business, with a focus on innovation and sustainability. Pichai has made efforts to diversify Google’s revenue streams by investing in emerging technologies such as artificial intelligence, cloud computing, and self-driving cars. He has also emphasized the importance of sustainability, announcing that Google will invest in renewable energy to power its data centers and offices.
In addition to his professional achievements, Pichai has been recognized for his philanthropic work. In 2021, he and his wife, Anjali Pichai, announced a $150 million donation to support underprivileged communities affected by the COVID-19 pandemic. The donation was made through their Pichai Foundation, which aims to support education, healthcare, and the environment.
However, Pichai’s high earnings have also been a source of controversy. In 2022, he made nearly $226 million, mostly from stock holdings. This has reignited the debate around CEO pay and the growing wealth gap between executives and ordinary workers.
Despite this, Pichai remains a prominent figure in the technology industry, and his leadership has contributed to Google’s continued success. As technology continues to transform, it will be interesting to see how Pichai and Google continue to innovate and adapt to the changing landscape.
CEO Income
In recent years, the topic of ballooning CEO income has become a point of controversy. Many people are questioning why CEOs are being paid so much, and whether it is justified.
Moreover, the majority of CEO pay is typically stock-related. This has led to a situation where CEOs are incentivized to focus on short-term stock price increases rather than long-term growth and sustainability. This can have negative consequences for the company, as well as for society as a whole.
The issue of CEO pay has become particularly relevant in the tech industry, where many CEOs earn astronomical salaries.
Critics argue that the ballooning salaries of CEOs have contributed to the growing income inequality in society. As the rich get richer, the poor are left behind, and the middle class is increasingly squeezed. This can have negative consequences for the economy as a whole, as well as for social stability.
There are also concerns that high CEO pay can lead to a lack of accountability. If CEOs are making so much money, they may be less likely to listen to feedback from others, or to take responsibility for their mistakes. This can lead to a lack of transparency and trust, which can harm a company’s reputation and bottom line.
Overall, the issue of ballooning CEO income is a complex and controversial one. While some argue that CEOs deserve to be paid high salaries for their leadership and expertise, others argue that the income gap has become too large, and that CEOs should be paid less. As the debate continues, it is clear that this is a topic that will continue to generate discussion and debate in the years to come.
Photo: SAve Delete
