Pay of Google CEO Sundar Pichai now tops $100m

Google chief executive Sundar Pichai received a $100.5 million (€88.9m) pay package in 2015, according to a filing from parent company Alphabet yesterday.

Mr Pichai received $99.8m in restricted stock that will vest in full by 2017. He also received a $652,500 salary.

The stock award hasn’t previously been disclosed in filings.

The former deputy of co-founder Larry Page was named to run the search engine unit following the reorganisation into a holding company last year.

Following that promotion, Alphabet in February awarded him restricted shares valued at $199m, the largest grant ever given to a Google executive officer whose pay has to be reported in filings.

The two grants have brought Mr Pichai’s holding of unvested restricted shares to $635m as of Monday’s close in New York, according to data compiled by Bloomberg.

He also holds unvested stock options valued at $11.6m.

Alphabet typically grants equity awards to executives once every two years, a strategy it has said “encourages executives to take a long-term view of the business.”

Executive Chairman Eric Schmidt received $8.04m for 2015, including a $1.25m salary and $6m cash bonus. Chief financial officer Ruth Porat was awarded $31m including $25.1m in restricted stock.

Meanwhile, Dublin-domiciled drugmaker Shire boosted chief executive Flemming Ornskov’s compensation five-fold last year to allay concern he might be wooed away by a rival.

Mr Ornskov’s total compensation rose to $21.6m last year, Shire said in its annual report. That includes $16.8m in long-term incentive awards. The CEO’s base pay surged 25% to $1.69m.

The salary raise took effect on July 1, weeks before Shire disclosed its pursuit of Baxalta.

Shire’s board didn’t discuss the increase with its largest shareholders until January, as the drugmaker put the finishing touches on its winning $32 billion bid for Baxalta, Anne Minto, the director who oversees the remuneration committee, wrote in the report.

“There was an immediate requirement to take action to ensure the CEO’s retention given his attractiveness as a potential recruitment target,” Ms Minto said.

“It was appropriate to make the salary increase in July 2015 despite the uncertainty surrounding the outcome of a possible transaction with Baxalta.”

Because the increase is “atypical when considered in the context of normal market practice,” Mr Ornskov’s salary will be frozen for three years.

Before the increase, his pay had lagged behind peers. Under his leadership, Shire has roughly doubled in market value to about $33.5bn.

Google CEO Sundar Pichai received a 0.5 million pay package in his 1st year at the helm https://t.co/TrCXOzAmQN pic.twitter.com/MJlwu86Owy

— Bloomberg (@business) March 30, 2016