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Google Paid This Man $100 Million

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Re: Google Paid This Man $100 Million

#41

Post by 777466 »

avenger123 wrote: post #20

This is a classic story of really good negotiation. Getting the very serious offer from Twitter was the best thing to happen to Neal. I can only imagine the negotiation with Google that he must of had. It probably went on the lines of something like this - "Hey, I really love it here at Google. I am really excited with what we are working on and want to deliver it but this Twitter offer is just something that I can't…

Serious question: does the sweetened language, how you couch the situation really make a difference to decision makers?

Re: Google Paid This Man $100 Million

#42

Post by cygwin98 »

yekko wrote: post #2

It's only a matter of time before us little developers get's similar packages!

Not really. I have been curious on what kind of compensation Paul Buchheit obtained for his creation of gmail and adsense, the former being the one of the two GOOG services I depend on daily, the latter built the empire financially. I am pretty sure that that amount could be far lower than $100M, which is a very depressive fact for our programmers.

Re: Google Paid This Man $100 Million

#43

Post by flyinglizard »

dopamean wrote: post #40
flyinglizard wrote: post #34

Reading this, his compensation is the least amazing part. If this article is true, it should have been titled "A Story Of Competence". Does anyone have any doubt the guy is generating Google this money many times over? It's simple math. It has nothing to do with curing cancer, economical equality or anything else. He's something that's worth X and pays back many X. I can understand why this comes as a shock to some;…

People sometimes find it difficult to understand that some people are actually worth the astronomical figures they are paid. When we hear about the big pay day it's easy to focus on that number what not what was done to earn it.

True, and it's way easier to accept how someone is a successful businessman or a stakeholder in a company, than it is to accept that someone may be actually producing this kind of value on a personal level. It's easy to imagine how some trader did some wheeling and dealing for a quick buck or how someone with shrewd instincts made a profitable investment, but it's very difficult to imagine how someone creates all this value by himself, day in day out; how someone stands out like this in an organization like Google, which is both an intellectual powerhouse and far removed from the compensation culture in the finance sector - this is even more difficult to accept.

Maybe that's why people pick on CEO salaries but stay silent on the shareholder profits from the very same corporations. You can imagine 100 million dollars of oil barrels or real estate, but you can't imagine a 100 million dollars mind.

Re: Google Paid This Man $100 Million

#44

Post by RockyMcNuts »

rayiner wrote: post #29
RockyMcNuts wrote: post #23

Earlier quoted context omitted.

vesting over... 7-10 years? $10m a year for a guy running a $7b business.

That's not out of line with what F500 CEOs get paid. Heck, Jamie Dimon's peak comp was double that and JPM is a $100 billion/year organization.

$7b revenue will put you in the 300s on the Fortune 500.

Since the display ads is one of Google's high margin cash cows, would guess quite a bit higher on the list in profits.

Google has about 1/2 the earnings of JPM, about 1/3 the book value, but a larger market cap than JPM, and let's just say there's some wiggle room in what JPM reports, loan loss reserves, 'debt valuation adjustment', non-marked to market 'whale' losses, etc.

Anyway, as a shareholder I have no problem at all with that kind of pay package if it's for a legitimate superstar who could otherwise run a competitor, it's reasonably tied to performance, not guaranteed if he pulls a . If he's adding 0.5% of earnings growth compared to the next best candidate it's a bargain.

Re: Google Paid This Man $100 Million

#46

Post by dopamean »

flyinglizard wrote: post #43
dopamean wrote: post #40

Earlier quoted context omitted.

People sometimes find it difficult to understand that some people are actually worth the astronomical figures they are paid. When we hear about the big pay day it's easy to focus on that number what not what was done to earn it.

True, and it's way easier to accept how someone is a successful businessman or a stakeholder in a company, than it is to accept that someone may be actually producing this kind of value on a personal level. It's easy to imagine how some trader did some wheeling and dealing for a quick buck or how someone with shrewd instincts made a profitable investment, but it's very difficult to imagine how someone creates all thi…

It really is a hard concept to grasp. It's one thing to have grand plans for a business. It's another thing entirely to be able to communicate those plans effectively to all of the people who will be needed to make sure the plan is properly executed. People who can do this successfully deserve everything they are given in my opinion.

Re: Google Paid This Man $100 Million

#47

Post by rayiner »

RockyMcNuts wrote: post #44
rayiner wrote: post #29

Earlier quoted context omitted.

That's not out of line with what F500 CEOs get paid. Heck, Jamie Dimon's peak comp was double that and JPM is a $100 billion/year organization.

$7b revenue will put you in the 300s on the Fortune 500. Since the display ads is one of Google's high margin cash cows, would guess quite a bit higher on the list in profits. Google has about 1/2 the earnings of JPM, about 1/3 the book value, but a larger market cap than JPM, and let's just say there's some wiggle room in what JPM reports, loan loss reserves, 'debt valuation adjustment', non-marked to market 'whale'…

Article says that Goole gets 32% of that $7 billion, which is not out of line with JPM's profits on its revenue. Yeah, Google has a lot more growth potential, but on the flip side, I'd imagine Mohan isn't in the line of fire as much as the CEO of a Wall Street bank...

Point is that he's not clearly getting low-balled at that number.

Re: Google Paid This Man $100 Million

#48

Post by rhizome »

RockyMcNuts wrote: post #23
rhizome wrote: post #22

Earlier quoted context omitted.

Based on a virtual napkin math based on what's in the story and GOOG's current stock price, I'm speculating the entire deal was simply "200,000 options." I'm sure he got a promotion/raise out of it as well.

vesting over... 7-10 years? $10m a year for a guy running a $7b business.

Yeah, I'm sure there's a vesting schedule. Golden handcuffs and all.

Re: Google Paid This Man $100 Million

#49

Post by richcollins »

flyinglizard wrote: post #34

Reading this, his compensation is the least amazing part. If this article is true, it should have been titled "A Story Of Competence". Does anyone have any doubt the guy is generating Google this money many times over? It's simple math. It has nothing to do with curing cancer, economical equality or anything else. He's something that's worth X and pays back many X. I can understand why this comes as a shock to some;…

The important consideration are the alternatives. He may easily create that much value but are there other people (substitutes) that could create as much or nearly as much for far less than 100M?

Re: Google Paid This Man $100 Million

#50

Post by rhizome »

flyinglizard wrote: post #34

Reading this, his compensation is the least amazing part. If this article is true, it should have been titled "A Story Of Competence". Does anyone have any doubt the guy is generating Google this money many times over? It's simple math. It has nothing to do with curing cancer, economical equality or anything else. He's something that's worth X and pays back many X. I can understand why this comes as a shock to some;…

I think the compensation is the most amazing part. There are so many competent people out there generating many multiples of value for their employers that it's surprising he's not getting screwed like the rest. That is, that Google recognizes and compensates him for his competence is the "man bites dog" aspect of this story.
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