Good week for Google CEO Sundar Pichai, set to cash in $380 million award

An award of 353,939 restricted shares he received before a promotion in 2014 will vest.

business Updated: Apr 23, 2018 15:18 IST
Anders Melin
Anders Melin
Bloomberg
Sundar Pichai,Google,Alphabet Inc
Google CEO Sundar Pichai is set to cash in his shares.(Bloomberg)

Google CEO Sundar Pichai is about to have a very big week.

On Wednesday, an award of 353,939 restricted shares he received before a promotion in 2014 will vest. At the end of last week, the grant was worth about $380 million, making it one of the largest single payouts to a public company executive in recent years, according to data compiled by Bloomberg.

Pichai, 45, who has led Alphabet Inc.’s Google since 2015, received the shares before his promotion to senior vice president of products a year earlier, when he took over many of co-founder Larry Page’s responsibilities. The award swelled in value as Alphabet’s stock surged 90% since the grant date, compared with a 39% advance of the S&P 500. He has received two more nine-figure stock grants since then. The company has yet to disclose Pichai’s compensation for 2017.

Winnie King, a spokeswoman for the Mountain View, California-based company, declined to comment.

In 2016, CEOs of S&P 500 companies realized an average of $16.2 million from shares that vested or exercising stock options, according to data compiled by Bloomberg.

Other tech executives have received hefty payouts in the past. Facebook Inc.’s Mark Zuckerberg reaped $2.28 billion when he exercised 60 million options as part of the company’s initial public offering in August 2012. Months later, restricted shares worth $822 million held by his deputy Sheryl Sandberg fully vested.

In 2016, Tesla Inc.’s Elon Musk collected $1.34 billion after exercising 6.71 million options that were close to expiring, in part to cover a $593 million tax bill. That same year, Monster Beverage Corp.’s two top executives took in a combined $598 million thanks to the stock rising an average of 30% a year for a decade.

First Published: Apr 23, 2018 15:18 IST