Shulou(Shulou.com)11/24 Report--

CTOnews.com, Aug. 6 (Xinhua)-- some tech giants made massive layoffs last year, but their CEO pay soared to tens of millions of dollars, according to ABC News analysis.

Sandal Pichai (Sundar Pichai), CEO of Google's parent company Alphabet, earned more than $225 million (CTOnews.com Note: about 1.616 billion yuan) in 2022, up a staggering 3474% from the previous year, making it the highest-paid CEO in the United States, according to data released by research firm Equilar in May and June. In early 2023, Alphabet announced plans to cut 10, 000 jobs.

The same goes for Microsoft. The company paid CEO Satya Nadella (Satya Nadella) nearly $55 million in 2022, up 10 per cent from the previous year. In January 2023, Microsoft announced plans to lay off 10,000 employees.

In addition, more than a dozen technology companies have also given CEO pay increases, although they have also announced layoffs since 2022, including Meta (formerly Facebook), Uber (Uber) and Salesforce.

According to Layoffs.fyi, about 389000 workers in the technology industry have been laid off since the beginning of 2022, involving some of the most famous large companies in the United States.

The contrast between pay rises and layoffs at the tech giant CEO has attracted the attention of analysts and people from all walks of life. In their view, this reflects the different destinies of CEO and employees in this lucrative industry, and in line with the growing income gap between CEO and employees throughout the economy.

Analysts point out that CEO's compensation usually includes base salary, performance bonus and stock award, of which stock award accounts for a large part, making CEO mainly in line with the interests of shareholders. This kind of incentive mechanism may encourage CEO to ensure the healthy development of the company, but it may also reward short-term cost-cutting at the expense of employees.

On the other hand, some laid-off employees expressed dissatisfaction and disappointment with the pay rise of tech giant CEO. They believe that this is not in line with the company's declared values such as caring about employees.

David Larcker, an accounting professor at Stanford University and a corporate governance researcher, says it is a big question whether a company should shift its focus from shareholders' interests to other stakeholders, such as employees and customers. He believes that layoffs are inevitable in the technology industry, but companies can mitigate the impact on employees by changing strategies.

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