Sundar Pichai, the Indian-born CEO of tech giant Google, is set to cash in around Rs 2,524 crore ($380 million) in one of the largest single payouts to a public company executive in recent years. According to a report in Bloomberg, an award of 353,939 restricted shares that Pichai received before a promotion in 2014 will vest on Wednesday.
The shares awarded to Google CEO rose in value as Alphabet's stock surged 90 per cent since the grant date. He has received two more nine-figure stock grants since then. However, Google has not disclosed Pichai's compensation for 2017 as yet, the report said.
Pichai, who grew up in Chennai, has led Alphabet Inc.'s Google since 2015. He received the shares before his promotion to senior vice president of products. Pichai took over many of co-founder Larry Page's responsibilities around the same time.
In 2012, Facebook CEO Mark Zuckerberg had cashed in $2.28 billion when he exercised 60 million options as part of the company's initial public offering. In 2016, Tesla Inc.'s Elon Musk collected $1.34 billion after exercising 6.71 million options that were close to expiring, the Bloomberg report added.
Earlier, Google's parent company Alphabet had detailed how it makes decisions regarding its dozen different businesses, with India-born Sundar Pichai wielding a lot of power over the search giant.
According to documents to the US Security and Exchange Commission (SEC), since Google blew up its corporate structure to form Alphabet in late 2015, it now separates its financials between Google and its "Other Bets". Other Bets currently include 11 different companies, like self-driving car unit Waymo and healthcare arm Verily, CNBC had reported.
Late last year, the SEC asked Alphabet for specific details around how much decision-making power Alphabet CEO Larry Page has on individual Google businesses, and the different kinds of information given to Page versus president Sergey Brin and Google CEO Pichai, among other things.
Alphabet CEO Page receives regular financial information about every Alphabet company but doesn't allocate resources to individual product areas within Google or within individual Other Bets.
That hands-off relations played out dramatically in the case of Nest, the company Google acquired for USD 3.2 billion in 2014. When Nest spun-out as an Alphabet unit, the two companies had no incentive to work together and ended up building similar products. Ultimately, Alphabet decided to roll Nest back into Google earlier this month.
Pichai, 45, also does not have authority over Alphabet's overall resource allocation to Google. He has no authority over parent company's "Other Bets" nor has any decision-making power over them despite the search giant counted for all of Alphabet's profit and more than 98 per cent of its revenue in its last quarter. But Pichai has a lot of power over Google, the report said.
He receives weekly and quarterly reports which include individual financial information for Google product areas, including YouTube, advertising, and hardware, and include operating results, capital expenditures, and headcount for Google as a whole.
Neither Page nor his co-founder, Alphabet President Sergey Brin, receive the weekly and quarterly reports received by Pichai, the report said.
Without Page's approval, Pichai can commit Google to non-standard licensing or similar arrangements, investments, mergers and acquisitions, and other commitments up to a set dollar threshold.
Also, capital expenditures, real estate, commercial arrangements, including licensing, partnership and revenue generating agreements and other similar transactions and expenditures up to a set dollar threshold.
Although Susan Wojcicki and Diane Greene both have "CEO" titles within Google, for YouTube and Cloud respectively, Pichai is the only Google executive who reports directly to and maintains regular contact with Page.
with PTI inputs