According to a regulatory filing with the Securities and Exchange Commission (SEC) by Alphabet Inc., the CEO of Google, Sunder Pichai, has received 273,328 Class C shares of Google stock as part of his compensation package in 2015. The shares are worth around $183 million at current valuation, making the stock grant the single largest such payout by the company, ahead of two separate $100 million allotments to the company’s Chairman, Mr. Eric Schmidt. While the first of these stock allotments to Mr. Schmidt took place back in 2011, the second transaction happened in 2014. Mr. Pichai is currently the CEO of Google Inc. after the restructuring late last year, having served as the product chief and SVP of the unified Google before the company was split up basically into Google and other assorted businesses for all practical purposes.
The whole restructuring exercise was undertaken in order to streamline the erstwhile Google’s often unwieldy businesses that span just about everything from internet search to bio-science, from autonomous vehicles to broadband connections, from augmented and virtual reality to IoT products and a whole lot more. The restructuring saw the creation of a whole new entity called Alphabet Inc. which now acts as the holding company for the tech giant’s profitable internet and Android businesses on the one hand (which continues to remain under the Google brand) and its various other – often unprofitable – endeavors on the other. The company also has a significantly high R&D budget, which isn’t always appreciated by sections of the investors, to whom, projects like Loon and Glass may seem like wild goose chase.
Of course, the restructuring has had its beneficial effects, seeing as Alphabet was briefly crowned as the most valuable publicly traded company on the planet, having went past its fellow Silicon Valley tech rival, Apple Inc. That title, however, was to stay with the Mountain Valley-based company just for a few days, as later that very week, Apple gained back its bragging rights with a strong Q4 earning report. Currently, both tech giants boast of eerily similar market caps (over $500 billion each), although, their stocks continue to be valued differently by investors and Wall Street pundits. While Apple’s stock is trading at a 10.0 price/earning ratio, Alphabet enjoys a three times higher P/E of 32.7.