In addition to the payout, Google may make Arora a CEO within the company.
LIKE US ON FACEBOOK
By Asif Ismail and Aastha Bhatt
SAN FRANCISCO/WASHINGTON: Is Google's decision last week to pay Nikesh Arora $8 million in cash, instead of the previously agreed upon stock options and stock units, part of its two-fold strategy to keep its top salesman from jumping ship?
The cash payment, reported by the internet giant in a regulatory filing with the US Securities and Exchange Commission, has left Silicon Valley guessing about the next move of the India-born senior vice-president and chief business officer of Google.
Of the total amount, $4.7 million is in cancelled stock awards, and $3.3 million is in discretionary cash bonus.
What makes the transaction more intriguing is the condition attached to it: Arora, who made more than $23 million in compensation last year, will have to repay Google if he chooses to leave his position, or if the company decides to terminate his employment before April 25, 2015, the date the stock units and options would have vested.
Google's move is so rare that compensation experts say the company may have some explaining to do to investors. "Taking cash instead of options is quite unusual in the [United States]," said Robin A Ferracone, executive chair of the Los Angeles-based Farient Advisors LLC, an independent consulting firm that advises clients on executive compensation.
Read the full story at The Economic Times...