Alphabet cuts 12,000 jobs globally amidst pay disparity controversy

Alphabet CEO, Sundar Pichai, received a total compensation package of $226 million in 2022, according to the parent company's recent securities filing. This figure is more than 800 times that of the median employee at Alphabet and includes stock awards worth approximately $218 million.

However, this pay disparity has been criticised by some, as it comes amidst global job cuts at Alphabet, resulting in the loss of 12,000 positions - around 6% of its global workforce - in January 2023.

In March, Google employees held walkouts in Zurich after over 200 workers were laid off. Earlier this month, hundreds of employees staged another protest outside the London offices following a dispute over further layoffs.

Despite this, Prabhakar Raghavan, the senior vice president of Google's knowledge and information, Philipp Schindler, chief business officer, and Ruth Porat, chief financial officer, all received high compensation packages, with figures ranging from $24.5 million to $37 million.

A broader tech slowdown has also affected the company, with shares falling by 39% in 2022. However, Alphabet remains one of the most successful and profitable companies in the world.

The median total compensation for Alphabet employees was $279,802 in 2022, significantly lower than Pichai's package, which was 808 times higher. Additionally, as part of his remuneration deal, the company spent $5.94 million on personal security for him.

Mr Pichai has made no comment on his salary or the protests surrounding job losses at the company. Despite the concerns raised, many have argued that he deserves his compensation due to his impressive leadership and success within the industry, pointing towards Alphabet's continued position as an industry leader.

Although there are undoubtedly issues regarding income inequality at Alphabet, they aren't isolated incidents; however, this latest case will likely fuel further discussions about CEO pay and income inequality in the tech industry.