Google faces Shareholder Lawsuit over Large Payouts to Former Executives

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Two of the tech giants’ former executives received large payouts despite allegations of sexual misconduct, to which shareholders have raised an objection

In 2018, Google was rocked by allegations of sexual misconduct by two of the company’s top executives Andy Rubin and Amit Singhal. Besides enraged social rights activists, Google was faced with a ‘walkout’ movement from their own employees, demanding the firm maintains transparency when it comes to sexual misconduct. Amidst all this, the accused executives were handed large payouts by the tech company, as they were laid off. It has been reported that Google had allotted a net budget of US$ 150 million as compensation for the two employees, without consulting the board. This has led one of the shareholders of Alphabet, Google’s parent company, to file a lawsuit regarding the hefty compensations rolled out by Google.

Initially, Rubin was allotted a US$ 150 million stock grant, raising concerns if the management, including CEO Larry Page, were even aware about the wrongdoings of the employees. Amit Singhal, who resigned after allegations were made stating he groped a female employee, was also allotted an initial compensation of US$ 45 million. The lead attorney of the case, has expressed the plaintiff’s disappointment over the management’s lack of knowledge regarding the matter, and also the “heavy reimbursement and gifts” awarded to the miscreants at their time of departure. After readjusting the severance packages, Rubin was given US$ 90 million and Amit Singhal walked away with US$ 15 million, as he decided to join competitors, Uber.

Google has issued statements confirming that they had zero tolerance towards such practices in the workplace, and that those indulging in such behavior would be faced with “serious consequences”. These recent developments have created a new problem for the tech company as the matter is surely going to be probed further.

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Cynthia Carrier is a graduate of Texas A&M, where she played volleyball and annoyed a lot of professors. Now as Plains Gazette's entertainment and Lifestyle Editor, she enjoys writing about delicious BBQ, outrageous style trends and all things Texas.