Google Execs Strike Gold: Doubling Down on Success with 200% Stock Payouts
Staff Editor
2 min read
Google parent company Alphabet has recently made headlines with its generous stock payouts to four top executives for their stellar performance in 2023. President and CFO Ruth Porat, along with senior VP Prabhakar Raghavan, chief business officer Philipp Schindler, and legal chief Kent Walker, were the lucky recipients of these substantial payouts, which were based on the company’s impressive public-markets performance. Despite their base salaries remaining at $1 million, the executives received an additional $1.5 million bonus each, underscoring Alphabet’s commitment to rewarding top talent.
In a regulatory filing released last week, Google disclosed that these executives were granted the maximum number of performance-based stock units, signaling the company’s confidence in their leadership and strategic contributions. Apart from the stock units, the executives also received significant amounts in performance and restricted stock units, with the vesting of these stocks contingent upon their continued tenure with the company. The executives’ stock-based compensation could reach up to 200% of the target number of shares, depending on Google’s performance relative to the S&P 100.
The stock payouts resulted in impressive compensation figures for the executives, with Porat and Walker each receiving a total stock value of $23 million for 2023. Raghavan and Schindler weren’t far behind, being compensated $35 million each in stock value. This substantial reward demonstrates Alphabet’s commitment to incentivizing its top talent and aligning their interests with the company’s long-term success. The performance-based nature of these payouts highlights the emphasis on driving sustained growth and value creation at Alphabet.
Alphabet’s filing revealed that the 2021 PSU awards stipulated that if the company’s Total Shareholder Return (TSR) performance exceeded the 75th percentile relative to the S&P 100 companies for the three-year period ending December 31, 2023, the maximum number of Performance Stock Units (PSUs) would vest in full. With Alphabet’s TSR standing at 60.19%, positioning it within the 79.80th percentile, the executives’ stellar performance contributed significantly to the company’s overall success.
The approval of the executives’ compensation package in early February came on the heels of a challenging year for Alphabet, marked by layoffs and project cutbacks that impacted employee morale. Despite facing criticism and backlash from some employees, Alphabet’s leadership team remained focused on driving performance and delivering results. The company’s strategic decision to reward its top executives handsomely reflects its commitment to attracting and retaining top talent in a competitive market landscape.
In conclusion, Alphabet’s generous stock payouts to its top executives underscore the company’s focus on rewarding performance and aligning incentives with long-term value creation. The substantial compensation packages reflect the executives’ pivotal roles in driving Alphabet’s success and ensuring its sustained growth in a dynamic and competitive market environment.
