Google Inc (NASDAQ:GOOGL) has hired Ruth Porat as the company’s new CFO. Porat, who was formerly employed as the CFO at Morgan Stanley (NYSE:MS), is making history as Google’s first female CFO.
Porat was reportedly offered a $70 million deal by Google, inclusive of stock and cash for moving from Morgan Stanley. The CFO, who was formerly receiving a salary of $1 million, will be earning a salary of $650,000 at Google. A decline in her salary, though she did receive a signing bonus of $5 million by Google, as well as a stock grant worth $25 million, which will be incremental over the subsequent two years. In addition, she will be receiving an annual stock grant worth $40 million for the subsequent four years starting next year.
Porat is said to have been making stock and cash, valued slightly above $10 million at her previous job in the last four years. She is expected to average $18 million at Google over the next four years.
Google Inc (NASDAQ:GOOGL) announced that executives will no longer be receiving cash bonuses. Instead, they are expected to receive two-year grants similar to those of Porat. This strategy is expected to create a close tie of the executive salaries to the stock performance of the company.
Porat’s new salary has not been changed from that of Google’s previous CFO, Patrick Pichette, who used to be paid a similar salary of $650,000.
Pichette is expected to extend his stay at Google, in order to facilitate the transfer of his knowledge and skills to Porat throughout the transition process. Her starting day has not been determined yet.
Picket is one of the very few women making the list as company heads at the helms of big companies in the USA and all over the world, in general. She contributes to the small percentage of women leaders in the S&P 500 companies, with the current number of women currently standing at 4.8%. The huge salaries are a testament of her knowledge and skills.
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