back to article Miffed Googlers meme on CEO's $226M pay award amid cost-cutting campaign

Alphabet and Google CEO Sundar Pichai's bumper 2022 pay award and the company's plan to repurchase shares amid a ferocious cost-cutting campaign is upsetting some in the workforce. The exec scooped up $226 million for the year, it emerged last month, with the bulk comprising $218 million in triennial stock awards – although …

  1. Snake Silver badge

    Oh, look

    the execs get huge bonuses, the stockholders get the benefits...the peons don't even get the crumbs off the catered pastries while they're being kicked out on their rear.

    But there's NOTHING wrong with our system, right??

    1. aerogems Silver badge
      Coat

      Re: Oh, look

      What the peons get is shown the door.

    2. Anonymous Coward
      Anonymous Coward

      @Snake - Re: Oh, look

      You don't seem to like capitalism, do you ?

      1. NoneSuch Silver badge
        FAIL

        Re: @Snake - Oh, look

        That's not capitalism. That's piracy.

        If the CEO gets a 600% bonus then everyone under him should as well. He didn't do it alone and in most cases the company did in in spite of any "leader."

        1. Anonymous Coward
          Anonymous Coward

          Most pirate enterprises were more eqitable

          The senior officers shares on pirate ships paled in comparison to what executive pay has ballooned to today. By many measures and in many cases the pirates were also better men, treating their own crews and even their victims with more consideration than some of our more sociopathic C-levels. Of course the crew could either vote the captain out or mutiny, so they could only push their own crews so far. And they had to risk alot less if the victims knew they would likely live unharmed if they surrendered(but might die if they fought).

          To find men of our ages caliber one might have to look to the slave trade instead.

      2. cmdrklarg

        Re: @Snake - Oh, look

        Capitalism is fine. It's crony capitalism (that being the issue here) that we don't like.

        1. Snake Silver badge

          Re: crony capitalism

          And that's what we have now thanks to money becoming our new religion. We've been so brainwashed that we're told to not even question the legitimacy of capitalism even when it has obviously been morally compromised.

        2. Lars
          Happy

          Re: @Snake - Oh, look

          I think Ann Jones gets it right here;

          "American author Ann Jones, who lived in Norway for four years, posits that "the Nordic countries give their populations freedom from the market by using capitalism as a tool to benefit everyone" whereas in the United States "neoliberal politics puts the foxes in charge of the henhouse, and capitalists have used the wealth generated by their enterprises (as well as financial and political manipulations) to capture the state and pluck the chickens.".

      3. Snake Silver badge

        Re: @AC capitalism

        You speak with the same commitment as they did with Marxism-Leninism in the old USSR. That is: never question your system (note that use the correct terminology, as 'socialism' has never existed on planet Earth and they officially didn't call it socialism either) even when it seems corrupted.

        1. Anonymous Coward
          Anonymous Coward

          Re: @AC capitalism

          If they didn't call it socialism, why does USSR stand for "Union of Soviet Socialist Republics."

          1. markr555

            Re: @AC capitalism

            Oh yeah, then why is it The People's Republic of China?? You're either disingenuous or a halfwit; possibly both.

          2. Intractable Potsherd

            Re: @AC capitalism

            <Insert standard comment about countries with "Democratic" in the name>

            1. Bbuckley

              Re: @AC capitalism

              Ah yes. The glorious Democratic Republic of Congo. All socialists should go there and sample the socialist dream.

          3. Snake Silver badge

            Re: @AC USSR

            Because that was their ultimate attainment; they started with Marxism-Leninism (later changed to 'Stalinism', or "Marxism-Leninism-Stalinism" in some social sciences circles, in honor of that despot) after the Revolution(s) and hoped to work, eventually, to full-on socialism via reconstructing both society and the population into the proper structures.

            https://en.wikipedia.org/wiki/Marxism%E2%80%93Leninism

            The fact that they did NOT have true socialism should be required as part of the general education, but it serves our own political expediencies when we continue to believe that the USSR was "socialist" in a hard-core sense (rather than the usage of the word simply being a convenient 'shorthand'). A reading of a good treatise on Russian-USSR/Soviet history is a worthwhile read if you can manage it (yes, my preferred reading material is usually quite dry, we won't go into a study of hydraulic dam dynamics).

            1. Anonymous Coward
              Anonymous Coward

              Re: @AC USSR

              Historical and modern political movements never fit into neat lexical boxes. So at that level any attempt to frame "pure socialism" is meaningless at the root. They also aren't monotypic. Each of those historical cases had features of socialism as set dressing over a subverted democracy with elements of authoritarianism, rule by tyrants, and the terror of a new breed of totalitarianism who's closest cousin was fascism.

              You also missed most of the categorical layers as those weren't full alternative movements, they were sub-types leveraging a shared ideology. Not that I'm saying you don't know about them, just that you didn't really mention them.

              But people were reacting to your statement that there has never been "pure socialism" (technically true but framed in a misleading way) and that they didn't call themselves Socialist, which other than the translation to English is kind of horseshit. "Sotsialisticheskikh" or "Социалистических" is effectively the same word, same idea, and was associated with the government and philosophical movement among other terms in both western and Russian literature.

              Lenninst was just the branding of a more extreme strain of a broader ideological movement. Communism as a subset of fringe socailsm, Marxism as a more specific branch of authoritarian revisions within Lennist thinking. The closest think to "pure socialism" as you seem to imply it was an academic diversion to keep counter-revolutionaries from pulling back the curtain and exposing the new authoritarians calling all the shots. It never existed as anything but a pipe dream, was never intended to be implemented as anything but a pretty set of empty promises that don't work.

              It irritates me to no end when modern conservatives try to conflate the massive failures of the various families Soviet Communism and governments with all other forms of socialism, but I also tend to lose it when someone whines about how we never "tried" pure socialism. It's been tried to the literal deaths of millions, and it has failed at every turn. Socialism is a useful tool for narrow policies, but the attempts to make it into a universal political or social philosophy are doomed. Much like capitalism as a philosophy or system of government, it's flawed to it's core. It inevitably succumbs to the exploitable power vacuum it holds no answers preventing, creating a vulnerable host to whatever tyrant or oligarchy that comes along to seize the reins next.

              Worse still, the idea that a socialist framework can be forced onto a culture or civilization as a revolutionary transformation. The few functional societies that are both stable over the long haul and strongly socialist got that way by implementing socialist strategies pragmatically, and only keeping the ones that are working. They are also still open to other ideas that aren't solely presented through the lens of socialism as a gimmick. Like I said, socialist as a utilitarian tool not an ideological framework.

              1. Snake Silver badge

                Re: @AC USSR

                Very astute and well spoken. USSR "socialism" was just another state-run authoritarianism with an attempt at a better PR campaign. But at least it ended up giving our own authoritarians decades of belittling talking points.

        2. Potemkine! Silver badge

          Re: @AC capitalism

          As far as I know, 'socialism' the USSR-way was the transitional way to communism.

          If you want to see successful socialist experience, look at Scandinavia. Socialism is not incompatible with democracy, on the contrary.

          1. simonlb Silver badge

            Re: @AC capitalism

            Unfortunately though, in the UK, socialism has traditionally been portrayed as communism.

      4. Intractable Potsherd

        Re: @Snake - Oh, look

        Go back and read Adam Smith properly.

  2. Sykowasp

    In a normal business, a CEOs single job is to grow the business.

    So they should be paid according to the value they have added to the business. Nothing more (perhaps a subsidence wage in-line with other employees).

    Their wage should be based purely upon the stock price gains their policies have achieved.

    Bad luck if the stock falls.

    I might be generous and allow some form of adjustment for overall market movements.

    1. lglethal Silver badge
      Stop

      Do not confuse Stock Price with Growth.

      It's exceptionally easy to drive up Stock price whilst effectively killing a company, by simply selling off whole business units (the profitable ones because no one particularly wants the non-profitable ones), and then promising Shareholders will receive a massive dividend from the sales. And once the Shareholders and CEO have collected there bonuses, you're left with a company a quarter the size, with the least profitable business units remaining. Followed by a slow spiral to the realm of dead companies....

      A CEO's pay should be linked to operating profit, not including any sales of business units, and before taking into account the costs of internal investment & R&D. That would actually reward a CEO for growing the business, whilst not incentivizing them to cut R&D in order to maximise their rewards. Also if profits go down, their pay should also go down. I'd also add in that any mass layoffs mean Zero bonuses for anyone in the C-Suite, as well as a cut in pay comensurate with the percentage of employees laid off, but then I'm a dreamer...

      1. aerogems Silver badge

        Not sure if it's true or not, but I read once about how at Ben and Jerry's, the CEO's salary was pegged to the lowest paid employee's salary. It couldn't be more than some percentage over what the lowest paid employee made. Seems like a good place to start IMO. And they should just be paid a straight salary because this whole incentivizing via stock options experiment has clearly not just failed, but backfired in pretty much the worst possible way.

        So, CEOs get a base salary, just like everyone else and then every year the employees get to do a performance evaluation of the CEO same as employees are subjected to. Based on the breakdown of the ratings, the CEO is eligible for the same raise structure as all other employees. Let's say 80%+ of employees approve of their handling of the company over the last year, they might be able to get a 15% raise or whatever the maximum is that's offered to rank and file employees. If their rating is at a level where any other employee might be on some kind of performance probation, the board must meet to discuss whether they should find a new CEO based on employee reviews.

      2. Anonymous Coward
        Anonymous Coward

        For "misleading growth" see what the VCs did to retailer Dick Smith before IPO in Australia.

        VC company Anchorage bought the business in 2012 for $94 million, then sold it just over a year later in an IPO for $520 million.

        While they owned it, they sold existing stock at reduced prices, without buying anything in to replace it. All the while cooking the books and hiding the state of the inventory. The business appeared to be going gangbusters due to high reported sales, so people piled into buying shares, while the VCs walked off with a fat profit. Only afterwards when the house of cards started to collapse, did the whole thing come to light.

        1. Steve Davies 3 Silver badge

          re: VCs

          This is why Vulture Capitalists are bad news for any business that they cast their evil eyes on.

          They come in promising the earth but all they do is asset strip and exit stage left leaving behind a company in tatters that is saddled with a shed load of debt.

          Then they rinse and repeat again and again.

      3. anothercynic Silver badge

        Yeah, agreed. Often CEOs will try to boost the stock price by arguing for a stock buy-back. Effectively the company has too much cash and thus buys (and reduces) its own stock. Of course the price goes up. So if the C-suite's salaries are bound to the stock price going up, this is the way to do it.

        Growth on the other hand is a healthier measure, but you can also inflate that by going on a buying spree and then claim the growth of those acquired companies as your own. I've seen this happen at a former employer. Shareholders were promised healthy growth, and when that stalled, the CEO went buying up various vendors *kind-of* in our space, and then managed to keep headline growth roughly where it was expected to be. Of course, eventually shareholders cottoned on and suggested that a new CEO be brought in - who promptly went on a big head number culling spree. It was not pretty.

        It's utterly irritating to hear C-suite people whine about how the company is in trouble, yet they walk away with golden parachutes (or sky-high salaries + bennies). If your company is in trouble, bucko, it's because *you* and your C-suite messed up, and it should be *your* bonuses, salaries and bennies on the block before you go for a cull in the cube farm. Lead by example. Cut your salary. Refuse the bonus. That alone can provide some extra cash flow to keep someone in a job.

    2. Plest Silver badge

      Get real!

      "Bad luck if the stock falls."

      You ever known a CEO to walk out without some sort of "golden goodbye" no matter whether they did well or badlyat their job?

    3. Dan 55 Silver badge

      Google has a CEO? I thought it had an absentee landlord given recent performance.

    4. CowHorseFrog Silver badge

      Why do you think the CEO deserves all the bonuses for growing the business ?

      Are you saying everybody else is doing absolutely nothing ?

    5. Roland6 Silver badge

      > a CEOs single job is to grow the business.

      So it’s part of the job description and hence factored into their pay. So like you and I, the only bonus they should get is the same profit share and share options as the employees who actually did the work necessary to generate the business improvements…

      1. FirstTangoInParis Bronze badge

        I did watch a Google product pitch where Google CEO had his say. Oh my, the guy has no presentation skills whatsoever. How their Marketing Comms team allowed that to go out is astonishing. He’s no Tim Cook, and neither are as good as Steve Jobs was at presenting, despite all his well documented faults.

        I’d thoroughly recommend reading Steve Jobs biography by Walter Isaacson, by the way.

  3. Anonymous Coward Silver badge
    Facepalm

    "he'd slash his salary by 98 percent after making job cuts"

    But at that level the salaries tend to be tiny anyway. They make it up in dividends, bonuses, etc. Because it's far more tax efficient that way. I seem to recall that Larry and Sergey had salaries of $1, but they weren't poor.

    So I imagine the corollary to the slashed salary remark is that the bonus received has increased by a similar dollar amount (actually, probably more).

    1. Anonymous Coward
      Anonymous Coward

      Brin and Page built the company, whereas the current CEO is initiating the self destruct.

      1. IglooDame

        And so (in a fair world) they get lots of money when they sell (to prospective stockholders, an acquiring business, or whoever) what they built, but as company leaders they still didn't/don't warrant a couple hundred million dollars in annual compensation.

      2. CowHorseFrog Silver badge

        I suppose you also believe that Hitler built all them rocket and wonder weapons.

        Wake up Sergey and Larry wrote a very small amoutn of code, its phsyically impossible for a one or two people to write that much code.

        1. Anonymous Coward
          Anonymous Coward

          Building a buisness is way more than coding

          And most successful founders aren't going to be the guy who wrote the most lines of code. Knowing when to put down the hammer and pay someone else to pick it up instead is one of the things the separates the ones that will last out of the startup (or pre-startup) phase. Since most businesses are not primarily self funded by the founders, their main early skill is convincing those with a sufficiently large pile of cash to set on fire that feeding the boilers of this new startup will get it somewhere.

          Some VC's actually take a dim view of leadership that is too hands on shop floor, so to speak. Not that I think that should justify what is essentially a huge bribe to make the founder more loyal to the board and VCs than to the company they themselves built, or what might otherwise be their own interests in the long term were it not for a larger cut of the action.

  4. silent_count

    @Sykowasp

    One way to push share prices up while doing absolutely nothing of value for the company is by doing a share buyback. Oh, just coincidentally, buybacks do increase the value of the shares of exec-level people who are compensated in shares. Oh and again it very coincidentally just so happens that the execs who are predominantly paid in shares are very much in favour of doing buybacks. Golly the coincidences just seem to pile up.

    1. Anonymous Coward
      Anonymous Coward

      yep! Buybacks used to be illegal. They were considered stock manipulation. Reagan changed that.

    2. Roland6 Silver badge

      There are buy backs and there are buy backs. Whilst this isn’t taking Google private, it does represent about 30% of the issued share capital. Suspect it is effectively a return of capital and hence has some tax efficiencies. Naturally in a year or so new shares can be issued and the process repeated…

  5. astwturns

    take over

    it's not as ironic as is planned by these big corp. tapped into America's hate culture and unleashed them on America, It's your basic sleight of hand, to make the people believe their freedoms are being taken with published lies. Keep them occupied and confused while their hands are reaping all the glory. making them believe programs that give help are handouts so they reject what is rightfully yours. Keeps the money flowing in their pockets, they use hate groups to solidify their lies by simply saying minorities are taking over. all stems from not letting the past go and being gullible to obvious historical lies..... nazi sympathizers in AMERICA! rukm (are you kidding me)

  6. aerogems Silver badge

    Even more galling, IMO, is Pichai is the chairman of the Alphabet board, meaning he gets to vote on whether or not to give himself a raise, do stock buybacks that make his stock options even more valuable, etc. In my far from humble opinion, the SEC and its counterparts around the globe, need to crack down on this conflict of interest bullshit. You can hold ONE officer position at a single company, the end. No more of this garbage where the CEO is also the board chair, or even on the board period, or the executives at various companies playing musical chairs every couple of years and moving to the board of different companies. You can be on the board of ONE company, and only if you're not an officer at another company. Break up this old boy's club and get some new blood in there. Maybe even impose term limits on how long a person can serve on a company board without being forced to take some time away, and that time away should include serving on any other company's board.

    1. localzuk

      I've never understood how all this professional boardmembers have enough time to be on the boards of so many companies tbh.

      All it proves to me is that boards don't really do a lot.

      1. aerogems Silver badge

        I know Scott Adams has exposed himself (no, not that way... at least not that I'm aware of) as a militant white nationalist *phobe of pretty much every stripe, but his short lived animated Dilbert show did have an amusing episode where Dilbert and Wally end up with a controlling share of the company stock. They go to a board meeting, and all they do is talk about golf. When Dilbert wants to actually discuss something serious, they eventually compromise on him at least holding a golf club while he speaks.

        Not sure how close to reality that is, but my guess is it's not as far off as some might think.

      2. Anonymous Coward
        Anonymous Coward

        It's less about the time than the conflicts of interest

        The board (at least in some jurisdicitons and corporate structures) isn't supposed to micro-manage the day to day operations. They guide and approve the big picture decisions that impact the shareholders investments. The C-levels are the ones that are supposed to run the day to day operations.

        The recent trend of CEO/Chairs muddies that. Especially if the person is a major(or worse majority) shareholder. Situations like that remove most of the checks of executive conflicts of interest, accountability, and power.

        That said it can also give the company a stronger voice on the board, but that might be better if the whole company got to pick or fire that board member at will, not just automatically grant it to the CEO.

  7. An_Old_Dog Silver badge

    In a Private Meeting ...

    Pichai: "'A different economic reality than the one we face today.' Bwahahaha! Oh, God, I crack me up! Oh, yeah. So here's a lollipop, kid, run along now, and don't let the door hit your ass on your way out."

  8. Joe Drunk
    Pint

    As a lifetime consultant I have on far too many occasions gazed at previous managers with a puzzled expression when offered a permanent position. To this day I still don't know why they are using the term 'permanent' when describing any job posting.

    Beer icon raised to the poor sods who somehow thought that working at a corporation meant job/financial security.

    1. Plest Silver badge

      My Dad told me that "job for life" was dead around about 1988 just as I was heading out into the world!

      If you get lucky then you get to stay in a job you like for a good few years but no one in their right mind seriously believes "job for life" survived the 1970s.

    2. Vern not Winston Smith
      Pint

      Permanent?

      I have always joked, if you are permanent you are really a temp with an unknown end date. There will be a day when your contract ends. When I was a consultant, I always knew my end date.

  9. Anonymous Coward
    Anonymous Coward

    "buT We DoNt Set OuR OwN PaY" etc.

  10. CowHorseFrog Silver badge

    I thought royalty and titles were banned in USA and yet as we see here and always this is completely untrue.

    There are far more royals and blue bloods in America than in the UK.

  11. Timop

    Imagine if you had ability for emphaty and take 10% effective paycut yourself while cutting costs. Yeah you'd loose millions but you probably could afford it. Easily. And majority of workforce would appreciate the act. A lot.

    But who cares about disgruntled employees who you can sack next time costs are being cut. Plus you get to keep every single million you think you absolutely deserved.

    1. M.V. Lipvig Silver badge

      Yup, and they know who will be on the next layoff - the ones upvoting the meme. Google knows who you are.

    2. FirstTangoInParis Bronze badge

      The film New In Town starring Renée Zellweger has a lot to say about corporate America and financially-driven layoffs and closures. It’s also a pretty good film in it’s own right.

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