After Laying Off 12,000 Employees, Google CEO Sundar Pichai Announces 'Significant' Pay Cut For Himself

In a recent town hall meeting with Google employees barely 10 days after announcing 12,000 layoffs, CEO Sundar Pichai said that all roles above the senior vice president level will see a significant reduction in their annual bonus.

Pichai, however, did not mention the percentage of salary that will be cut or for how long.

Pay Cut For Sundar Pichai

Reuters

It is likely that Sundar Pichai himself will also take a pay cut, as his compensation is linked to the company's performance, and his role (CEO) falls amongst the positions mentioned by him for pay cuts.

During the address, Pichai said "The more senior you are, the more your compensation is tied to performance,¡± he said, as per TOI.

¡°You can reduce your equity grants if performance is not great," he added. Though there is no official confirmation, it is quite clear that Pichai too will be taking a salary cut along with all other top executives. Besides the layoffs, Google had also taken the decision to delay bonuses, by paying out 80% of bonuses in January with the rest expected in March or April. In previous years, the full bonus was paid in January.

Google CEO Pichai's salary has recently seen a significant increase, with Google's parent company Alphabet recognizing his "strong performance" as CEO. In 2020, Google disclosed Pichai's annual salary to be $2 million. However, his net worth has fallen 20% to Rs 5,300 crore, according to the IIFL Hurun India Rich List 2022.

Mass Layoffs At Google

This pay cut announcement comes just a few weeks after Google announced layoffs of 12,000 employees across different verticals.

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Many impacted employees have reported that they were not ready for the layoffs and that their access to internal office groups was abruptly removed. Some employees also complained that they found out about their layoffs when their ID access turned from green to red, as per ET.

The layoffs at Google have started in the United States and will be followed by other markets, possibly including India, in the coming weeks, as per the report. This is a difficult time for the company, as the layoffs come amid tough macroeconomic conditions. Pichai has clarified that the layoffs were not "random" and were based on specific performance ratings.

Also Read: How Big Tech CEOs Justified Their Company's Mass Layoffs

Other CEOs Taking Pay Cuts

Google and Alphabet CEO Sundar Pichai wont be the first CEO to take a pay cut in recent times. David Solomon, the CEO of Goldman Sachs Group had taken a hit recently. His 2022 compensation was cut by about 30% to $25 million last week. Goldman Sachs CEO Solomon joined Morgan Stanley CEO James Gorman on the list of CEOs accepting a pay cut.

And that's not all. Apple CEO Tim Cook too had voluntarily taken a 50% for 2023.

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While tech giants such as Microsoft, Google, Amazon, HP, Meta and many others have been announcing mass layoffs, some CEOs taking pay cuts seems to be another move to possibly avoid more layoffs and help in cost cutting.

Also Read: How A Lost iPhone Led To Warren Buffett Investing Billions In Apple

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