Archive for $90 million severance pay

Android Inventor Accused of Sexual Misconduct Gets $90 million in Severance and $150 Million Stock Grant

According to a lawsuit, Alphabet Chief Executive Officer Larry Page gave Andy Rubin, creator of Android, a $150 million stock grant without getting any board approval. The company is accused of covering up his alleged misconduct when he left the company in October 2014. At the time of his leaving, Page said that he wished Andy the best in a public statement.

Page did get approval for the compensation package from the board committee over a week after granting the payout to Rubin. In addition to the stock grant, he also received a $90 million severance package.

Allegations in the lawsuit pull Page into the controversy that surrounds how Google handled the sexual harassment complaints against Rubin. Usually, the Alphabet co-founder stays behind the scenes and Google CEO Sundar Pichari deals with the criticism of the company culture. Inventors claim that the board failed in its duties by allowing the harassment to happen and approved the big payouts while keeping the details private. The complaint targets top committee members and executives, including the Alphabet Chief Legal Officer.

An employee had accused Rubin of sexual misconduct. The woman was having an extramarital affair when he forced her into performing oral sex while in a hotel room in 2013. Google investigated the claim and concluded that the claim was credible.

Instead of just firing him and paying him nothing on the way out, he was awarded a huge settlement and that’s what the plaintiffs are complaining about. Rubin’s settlement was paid in installments of about $2 million a month for four years. The last payment ended in November 2018. The lead lawyer has said that their own investigation showed there was harassment, but there were still large payouts.

The complaint was made public in March 2019 at a California state court in San Jose. The suit was originally filed in January, but some claims were blocked from the public.

After news of this, the company was pressured to make changes last year. Tens of thousands of Google workers walked out of work in November to protest how the company handled the sexual misconduct claims. Google has promised to be more forceful in handling these cases.

Lawsuit against Alphabet, Inc. Alleges Sexual Misconduct

Alphabet, Inc., parent company of Google, is facing a lawsuit over allegations of sexual misconduct in the workplace. Shareholders decided to sue directors of the company after Andy Rubin (the creator of Android and former Google employee) was granted a $90 million severance payment.

The investors who are part of the suit claim that Alphabet’s board of directors not only allowed harassment to occur, but also took measures to keep it private.

Claims that Rubin sexually harassed employees were found to be credible, and shareholders are targeting some of the top executives who tried to keep Rubin’s behavior quiet; these executives include Larry Page, Sergey Brin, John Doerr, Ram Shriram, and David Drummond.

In light of Rubin’s actions and the subsequent coverup, thousands of employees at Google protested via a walkout. This action by employees did cause the management to change some of its policies, including those regarding sexual misconduct in the workplace.

A statement from one of the employees who was an integral part of the walkout reveals that Google employees support the shareholders and their lawsuit. The employee also stated “Anyone who enables abuse, harassment and discrimination must be held accountable, and those with the most power have the most to account for.”

There is also speculation that another former Google employee, Amit Singhal, sexually harassed others in the workplace. Like Rubin, he quietly left the company with a large severance package.

After the allegations against Rubin were found to be credible, a shareholder filed a complaint with Google’s audit and compensation committees. Among others on these committees were Page and Brin.

Rubin’s lawyer, Ellen Winick Stross, made a statement saying that the claims against Rubin are sensationalized and that he does not admit to any sexual misconduct.

While shareholders are suing Google for the mishandling of the sexual misconduct, Google admitted to releasing 48 people due to sexual harassment without offering any severance packages.

Because the lawsuit is being filed by Google shareholders, any money won will go back to Google. The point of the lawsuit is to force a change in the company at the corporate level. The name of the case is Martin v. Page, 19-cv-00164, California Superior Court, San Mateo County (Redwood City).