Google's multi-million dollar welcome to new CFO

Google finally named a replacement for its outgoing chief financial officer, George Reyes. He is Patrick Pichette who comes to the search juggernaut after seven years at Bell Canada.

So how do you make a new top executive feel at home at his new job where he will be surrounded by people who are probably a whole lot richer than he is?

Begin with a $500,000 signing bonus. Then throw in another $500,000 if he makes it to his six-month anniversary. Give him a $450,000 salary, which is 450,000% 4.5 million percent higher (thanks to Carl Madson for the correction) than his bosses, and set his target bonus at 150 percent of that, or $675,000.

Pay for his move, of course. Medical and dental insurance. (Oh yeah, you’ll need that down here, Patrick.) And Google will put 4 percent of his pay into the Wellesley Fund, a “balanced fund of stocks and bonds.” How sober.

But what about, you know, that coin of the realm — Google stock?

Pichette will get a stock option to purchase 11,112 shares of Google priced at the closing on the day they are granted, which will be on the Wednesday of the week following his start date, set to be August 2. He’ll also get a stock award good for 5,566 shares. Both will vest over the course of four years.

But wait, there’s more. Pichette will get two other awards of 910 shares each. One will be his if he makes it past six months makes and the other will be his after a year. We did the math. At Wednesday’s closing price of $551, the value of those two grants alone are worth about $500,000 — each.

Prior to Bell Canada, Pichette served as a partner with McKinsey & Co. where he was a lead member of the consulting firm’s North American telecom practice. From 1994 to 1996, he was was CFO of Call-Net Enterprises, a Canadian telecommunications company. He earned his B.A. in business administration from Universite du Quebec a Montreal and an M.A. from Oxford University, where he attended as a Rhodes Scholar. Rounding out his don’t-be-evil pedigree, Pichette also serves as chairman of the board of Engineers Without Borders (Canada).

The press release doesn’t mention the subject of Pichette’s citizenship, or whether he’ll need a green card to work here, but his offer letter notes that his employment with Google is “contingent on your eligibility to work in the United States” and ends with this reminder: “please bring appropriate verification of eligibility to work in the United States on your first day.”

Bienvenue!

Bay Area News Group blog editor (1221 Posts)