Google switches executive's payout from stock to cash
SAN FRANCISCO (Reuters) - Google Inc canceled thousands of stock options and stock units awarded to its chief business officer earlier this month and said it would instead pay him $8 million in cash.
Nikesh Arora, who oversees Google's revenue operations as well as marketing and partnerships, will receive the payment on May 11, according to a filing Google provided to the U.S. Securities and Exchange Commission on Monday.
The change means Arora will not have to wait for the payout until 2015, when the stock units and options vested. Arora will also get a $3.3 million "discretionary" bonus, Google said in the filing.
If Arora leaves Google for any reason before April 25, 2015, he must repay the $8 million, according to the filing.
A Google spokeswoman said the company does not comment on the compensation of executives at the company.
The new compensation arrangement, which was approved by the leadership development and compensation committee of Google's board last week, includes the bonus and a $4.7 million payment in exchange for the stock awards.
Arora, who joined the Internet search company in 2004, was awarded 4,323 stock units of Google's Class A common stock and 8,646 stock options on April 4, Google said in the filing. The stock units and options were scheduled to vest in April 2015.
(Reporting by Alexei Oreskovic; editing by Andre Grenon)