At Google, the social climate is increasingly tense internally. Last summer, a controversy arose around the remuneration of teleworking employees.
Two weights, two measures. So we could qualify Google’s policy with regard to its workforce. And for good reason, the US giant has revised upwards the salaries of four senior executives, just weeks after indicating to its employees that it would not automatically adjust salaries to take inflation into account. Google would undoubtedly have preferred that this difference in treatment remained confidential… Alas, the new salaries of the four executives concerned were disclosed in a document filed with the SEC (Securities and Exchange Commission), the US stock market policeman.
In this document dated December 28, 2021, we learn that CFO Ruth Porat, research boss Prabhakar Raghavan, commercial director Philipp Schindler, and vice president of global affairs and general counsel Kent Walker, have seen their salaries. base go from $ 650,000 to $ 1 million. It is also indicated that these four senior executives can participate in an annual bonus program of up to $ 2 million, depending on their contribution to the group’s performance in relation to the social and environmental objectives set for the year 2022.
From 23 to 35 million dollars in shares granted
The icing on the cake, the four senior executives of the Californian company also received between 23 and 35 million dollars in shares. In detail, Prabhakar Raghavan and Philipp Schindler have benefited from $ 12 million each in performance-related shares, which will vest between 2022 and 2024 depending on the evolution of the share price relative to other companies listed in the S&P 100 index. They received an additional $ 23 million in restricted shares which will vest quarterly in 12 installments, provided they do not leave Google. For their part, Ruth Porat and Kent Walker received $ 5 million in performance-related shares and $ 18 million in restricted shares.
These generous sums given to these senior executives risk causing internal cringe. In December, Frank Wagner, vice president of compensation at Google, had indeed indicated to employees that the group would not increase them to cover the increase in costs caused by inflation. But this does not visibly apply to the leaders of the American firm, most of whom have therefore benefited from a nice salary increase.
Google’s teleworking policy creates controversy
This should not alleviate an already tense internal climate. This summer, a controversy arose around the remuneration of Google employees working from home. Google had indeed decided to index the salary of its employees working remotely to the cost of living in their place of residence. According to Le Figaro, several employees of the group have consequently given up teleworking to avoid seeing their income fall. Worse yet, Google’s senior vice president of technical infrastructure Urs Hölzle moved to New Zealand after opposing remote working for employees below a certain level of seniority, according to CNET.
Two weights, two measures therefore, while Google is very far from being in difficulty. In the third quarter of 2021, the firm reported net income of $ 18.9 billion. In addition, the group is doing very well on Wall Street with a market capitalization that has more than doubled since the start of the Covid-19 pandemic. It now stands at 1900 billion dollars.