Google CEO Sundar Pichai is getting a big salary bump with his expanded role as CEO of Alphabet.
According to a recent Securities and Exchange Commission filing, Pichai will receive a $2 million salary, plus a $240 million stock package that’s set to take effect in 2020. The stock will be granted over three years and is tied to performance targets.
In 2018, Pichai earned $1.9 million.
His pay increase comes after Google co-founders Larry Page and Sergey Brin stepped down earlier this month as heads of Alphabet, Google’s parent company.
Page had been CEO of Alphabet and Brin was president. They will continue to be involved in the tech giant as shareholders and board members.
yerawizardharry on December 22nd, 2019 at 20:24 UTC »
You pay no taxes on stock compensation when it is granted, full income tax on the value of stocks at /vest/, and reduced taxes (capital gains rate) on the difference in value from the vest date when you sell if the vest was more than a year ago. Otherwise it's regular income tax rate.
If Mr. Pichai is given a $1,000,000 stock plan that vests in 2022 he pays $0 in taxes on that compensation /today/.
In 2022 when the shares vest those stocks might be worth $1,200,000. He will pay regular income tax rate on $1,200,000 of income.
If the value goes up to $1,500,000 in 2022 and he sells everything before the 1 year anniversary of the vest he pays regular income tax on $300,000 (in addition to the vest income tax on $1,200,000).
If he holds on for at least a year and then sells everything for $2,000,000 in 2024 he will pay a reduced tax rate (capital gains) on $800,000 that was not taxed in the initial vest.
Hope this helps people understand better.
wwabc on December 22nd, 2019 at 17:33 UTC »
oh good, I was worried about him.
fixedfree on December 22nd, 2019 at 17:13 UTC »
Saved you a click: According to a recent Securities and Exchange Commission filing, Pichai will receive a $2 million salary, plus a $240 million stock package that’s set to take effect in 2020. The stock will be granted over three years and is tied to performance targets.
In 2018, Pichai earned $1.9 million.