Alphabet Inc. has granted Sundar Pichai, the chief executive officer in charge of its Google subsidiary, a restricted stock award worth $199m, making him one of the world’s highest paid corporate executive of a publicly listed company.
Mr. Pichai was awarded 273,328 class C shares on Feb. 3, according to a securities filing Friday. The shares will be conferred on quarterly increments until 2019, provided he stays on the job.
Mr. Pichai was appointed last year to spearhead the main Google business following a reorganization that saw all units of the company consolidated under a holding company Alphabet.
This was the first time Mr. Pichai was awarded since he took over the management of Google business. It is also the biggest award ever given to a Google executive whose equity grants must be included in securities filings.
Other key figures at Google who received restricted stock awards include Diane Greene and Ruth Porat.
Ms. Greene, the co-founder and former CEO of VMware Inc. , was awarded equity valued at $148m last year following Google’s acquisition of Bebop Technologies, which she had also co-founded. Currently, Ms. Greene runs Google’s cloud business, a position she had held since November.
Ms. Porat, Alphabet’s Chief Financial Officer who was hired from Morgan Stanley in May, was awarded equity of $38.3m. The award is set to be conferred in a similar fashion to that of Mr. Pichai.
The latest award has shored up Mr. Pichai’s shareholding in Alphabet to at least $600m. However, this still lags behind the stakes currently held by Alphabet’s executive chair Eric Schmidt and co-founders Sergey Brin and Larry Page.
Alphabet Stock Award One of the Largest
Nonetheless, Mr. Pichai’s stake ranks as one of the biggest ever awarded by an American firm. Apple Inc. granted its CEO Tim Cook restricted stock worth $376m after he was appointed in 2011 to succeed the late co-founder Steve Jobs.
In term of annual compensation based on data compiled in 2014, Liberty Global’s CEO Michael Fries leads the pack with a total payout of $112m, inclusive of salary, equity grants, bonuses and other awards. Following a close second is Microsoft Corporation’s CEO Satya Nadella with a total yearly compensation of $84.3m for the year 2014.
Google has a policy of granting its top executives equity awards once in two years, an approach it considers motivates them to inculcate a long-term view of its business when making decisions.
Still, Alphabet also is keen on retaining the services of Mr. Pichai, who has been at the forefront of driving up its core Google business that contributes 90 percent of its annual revenue.
Mr. Pichai, a native of India, has previously worked on Google’s Chrome Internet browser and also overseen the growth of its Android mobile OS for quite a long time. All this makes him a prime target for rivals eager for his services.