After looking for a nearly a year, Google has finally found a new chief financial officer to replace outgoing CFO George Reyes. So who’s job will it be to count all of Google’s cash? The lucky winner of what must have been one of the most intense executive searches of the year is Patrick Pichette, the president of operations at Bell Canada.
Google went with a relative unknown here, but Pichette (a Rhodes Scholar and former McKinsey consultant) must have done well on the brain teasers Google famously asks all incoming employees. Pichette will be counting some of his own cash. At today’s stock price of $532, Pichette is looking at $1.7 million just in restricted stock a year from now. Add a $500,000 signing bonus, plus the here’s-another-$500,000-for sticking-around-six–whole-months bonus, plus his $450,000 base salary, plus another regular bonus of as much as $1.125 million and the total comes to $4.3 million. And that is not even counting the stock options. (In comparison, last year George Reyes brought home $5.1 million in total compensation. Sergey Brin, Larry Page, and Eric Schmidt each receive $1 in base salary, although Schmidt’s personal security detail cost the company $475,000 last year and is listed as part of his total comp).
The compensation details outlined in Pichette’s offer letter are the following:
—Patrick’s annual base salary will be $450,000 and his discretionary target bonus percentage will be 150% of his annual base salary.
—Google has agreed to pay Patrick a special one-time sign-on bonus of $500,000 (taxed as supplemental income).
—Google has agreed to pay Patrick an additional special bonus of $500,000 (taxed as supplemental income) upon completion of six months of employment. In the event that Patrick’s employment is terminated by Google prior to the end of this six-month period, this additional bonus will be paid out in full within 30 days from the date of termination.
—If Patrick terminates his employment with Google before the one year anniversary of his start date then Patrick will be required to repay the special bonus amounts described above, prorated for time spent at Google.
Google has agreed to grant Patrick four new hire equity grants:
— stock option to purchase 11,112 shares of the Google’s Class A common stock pursuant to Google’s 2004 Stock Plan. The stock option will vest at a rate of 25% on the date one year after Patrick commences employment and will vest an additional 2.083% each month thereafter, for a total vesting period of 48 months.
—5,556 Google restricted stock units (GSUs) pursuant to Google’s 2004 Stock Plan. The GSUs will vest at a rate of 25% on the date one year after Patrick commences employment and will vest an additional 25% each year thereafter, for a total vesting period of four years.
—910 GSUs pursuant to Google’s 2004 Stock Plan. The GSUs will vest at a rate of 100% on the date six months after Patrick commences employment. In the event Patrick’s employment is terminated (other than as a result of Patrick’s resignation) prior to the six month vesting date, this GSU grant will immediately vest.
—910 GSUs pursuant to Google’s 2004 Stock Plan. The GSUs will vest at a rate of 100% on the date 12 months after Patrick commences employment. In the event Patrick’s employment is terminated (other than as a result of Patrick’s resignation) after six months but prior to the 12 month vesting date, this GSU grant will immediately vest.
Google will assist Patrick with relocation-related expenses pursuant to Google’s policy with respect to the relocation of officers in North America.
In accordance with Google’s standard equity grant policies, Patrick’s options and GSUs will be granted on the first Wednesday after Patrick commences employment with Google.
Patrick will also participate in the compensation and benefit programs generally available to Google’s executive officers.
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