Ruth Porat, Google’s new chief financial officer, is joining a company that has more than 50,000 employees and is one of the most valuable corporations in the world. Thus, given Google is long past its early days, it’s not the kind of place that will make her a start-up billionaire.
Instead she will have to settle for $65 million in stock
grants, a $5 million signing bonus and a yearly salary of $650,000, according to a company filing to the Securities and Exchange
Commission on Thursday.
Ms. Porat, who is joining Google from her post as Morgan
Stanley’s chief financial officer, will start her job on May 26, according to
the filing. Sometime within her first month she will get a $5 million signing
bonus; she would have to return that bonus, on a pro-rated basis, if she quits
before her first anniversary.
On top of that, she will get a $25 million stock grant
that will vest between the end of the year and 2017, along with another stock
grant, for $40 million, that she will receive next year. That one vests from
2016 to 2019.
Her total compensation at Morgan Stanley was $10 million
in cash and stock in 2013, according to Morgan Stanley’s latest annual report.
Ms. Porat, who will replace Patrick Pichette, who is
retiring to relax and travel , also gets a $7,500 moving
allowance, though it seems unlikely she will need it.
Google used the same regulatory filing to announce that
it had changed the way it will pay senior vice presidents. The company said
that starting next year, it will eliminate cash bonuses and replace them with
stock grants every two years.
A Google spokeswoman declined to comment, but the company
presumably made the change to align senior officers’ paychecks with the
interest of its increasingly impatient shareholders.
As Google gets close to its 11th anniversary as a public
company, the company is for the first time facing questions about its growth and stock price.
The company’s stock has been essentially flat from a year
go, and shareholders would like Google to use some of its
$65 billion cash hoard to either issue a dividend or try and lift the stock
price by buying back shares.
Source +New York Times
Tagged +New York Times +Google+
Post a Comment