Credit: Jin Lee/Bloomberg News

Google is paying its new CFO $70m

Google is 'compensating' its new CFO Ruth Porat $70m over two years. And we thought Carolyn McCall was well paid...

by Adam Gale
Last Updated: 06 May 2015

Morgan Stanley’s outgoing finance chief Ruth Porat said she was ‘delighted to be returning to [her] California roots’ this week, as she accepted a job as Google’s CFO. We’ll bet she was. Google’s paying her a colossal $70m (£47m) package over the next two years. Anyone would think it had $50bn in cash just lying around or something.

Porat’s actual wage will only be $650,000, which pales in comparison with the $30m golden hello she’s getting this year and the $40m stock grant she’ll pick up next year. Talk about incentive pay…

It’s an impressive amount for two years’ labour, but how does it compare with some of Britain’s best? Carolyn McCall turns heads every year when EasyJet publishes its fiendishly complicated bonus pay outs. The airline’s boss got a £7.7m payday in 2014, many would say deservedly since the firm’s profits rose 22% for the year.

TUI Travel paid its boss Peter Long nearly £15m in 2014, as performance related share options vested, while WPP’s Sir Martin Sorrell took home a whopping £36m through a similar scheme. Very impressive, but not quite Google.

Perhaps the only way British bosses can compete with these cash rich American giants is when they own the company, and are thus able to pay themselves dividends. Arcadia founder Sir Philip Green famously paid his family a £1.2bn dividend in 2005. Try finding a bonus that big in Silicon Valley.

Tags:
Leadership

Find this article useful?

Get more great articles like this in your inbox every lunchtime

What pushy fish can teach you about influence at work

Research into marine power struggles casts light on the role of influence and dominant bosses...

The traits that will see you through Act II of the COVID crisis ...

Executive briefing: Sally Bailey, NED and former CEO of White Stuff.

What's the most useful word in a leader’s vocabulary?

It's not ‘why’, says Razor CEO Jamie Hinton.

Lessons in brand strategy: Virgin Radio and The O2

For brands to move with the times, they need to know what makes them timeless,...

Why collaborations fail

Collaboration needn’t be a dirty word.

How redundancies affect culture

There are ways of preventing 'survivor syndrome' derailing your recovery.