It looks like Sundar Pichai, the CEO of Google, is going to have to bring his A-game if he wants to continue raking in the big bucks. According to a recent announcement from Alphabet, the parent company of Google, Pichai’s salary is now going to be more closely tied to his performance.
But it’s not all bad news for Pichai. The equity award that was recently approved by the board was actually a sign of their recognition of Pichai’s “strong performance” as CEO. So, it seems that Pichai has been doing a good job and the board wants to reward him for it.
However, the performance requirements for Pichai’s payout have also been increased. Previously, his Performance Stock Units (PSUs) made up 43% of his salary, but now that number has been bumped up to 60%. That means Pichai will have to work even harder to earn those stock units, but the payoff could be huge if he meets those performance goals.
It’s always interesting to see how CEO salaries are tied to their performance. It’s a way to ensure that the top executives at a company are held accountable and are motivated to do their best work. And it looks like Pichai is no exception. Let’s see if he can rise to the challenge and continue his strong performance as the CEO of Google.
Food fan. Lifelong problem solver. Communicator. Organizer. Twitter buff. Total bacon enthusiast. Wannabe beer geek.