New Google Chief Financial Officer Ruth Porat, who revealed earlier this week that she will be transferring from a similar position at Morgan Stanley, will receive over $70 million worth of bonuses and restricted stock for switching companies.
Over Porat's first seven months in Google, which will be from her start date of May 26 until the end of the year, she will be receiving around $30 million worth of stock and cash. In the year 2013, Safra Catz, then the CFO of Oracle, received a higher compensation of $43.6 million. However, that figure was for the full year.
Porat's salary will be higher compared to most CEOs of Wall Street companies, including that of her former boss Morgan Stanley CEO James Gorman, who received compensation worth $18 million in 2013.
In comparison with more recent data compiled from 2014, Citigroup CEO Michael Corbat received a pay package of $14.5 million while Bank of America CEO Brian Moynihan received $15.3 million.
Porat, a native of California, is receiving a massive raise to come back home to her home state where Google is based. In 2013, it was reported that she received a salary of $10.1 million at Morgan Stanley.
Porat's pay package is composed of a $650,000 base salary, a $5 million signing bonus and stock grants worth $65 million. The stock grants are divided into two parts, specifically a new-hire grant of $25 million that will be paid over the following three years and a grant of $40 million that will run through 2019.
Patrick Pichette, the person that Porat is replacing as Google's CFO, made only $5.2 million for 2013 and $38.7 million in 2012, with those amounts already including stock awards.
The investors of Google supported the hiring of Porat, leading to an increased share price of 2 percent following the announcement of her entry into Google. Investors are hoping that Porat will implement a more controlled approach to the company's expenses, as Google has been investing in projects such as worldwide Internet connections and driverless cars. Investors are also hoping that Porat will decide to give back some of Google's $64 billion of held cash back to them through stock buybacks or dividends.
In a securities filing, Google also revealed changes to the compensation of Pichette to allow for several equity bonuses to be handed over quicker, which the company said will ensure that Pichette continues with his CFO role as the transition to Porat commences.
Photo: Andrew Feinberg | Flickr
