Google paid executive accused of misconduct $45M
Exit package revealed in shareholder suit alleging firm mishandles harassment cases
Alphabet’s board of directors agreed to pay a former top Google executive as much as $45 million (U.S.) when he resigned from the company in 2016 after being accused of groping a subordinate.
The previously undisclosed sum was in the separation agreement for Amit Singhal, a senior vice-president who ran Google’s search operations until February 2016.
The amount was revealed Monday in a shareholder lawsuit accusing the board of directors of Alphabet, the parent of Google, of shirking their responsibilities by agreeing to pay executives accused of misconduct instead of firing them for cause.
The suit was part of the fallout over how Google has handled sexual-harassment cases. The New York Times reported in October that Google had handsomely paid several high-ranking executives in separation agreements after they were credibly accused of sexual harassment, even though the men could have been fired for cause. In one case, Google handed a $90 million exit package to Andy Rubin, who used to head its Android division, after he was accused of sexual misconduct.
The shareholder lawsuit was filed in January in California Superior Court with redactions in the passages referring to board discussions. An amended version was filed Monday without the redactions.
Frank Bottini, an attorney for the shareholders, said the board-approved payments were an “abdication of responsibility.”
A Google spokesperson said Monday that the company had “made many changes to our workplace and taken an increasingly hard line on inappropriate conduct by people in positions of authority.” She added, “there are serious consequences for anyone who behaves inappropriately at Google.”
According to the amended suit, Google agreed to pay Singhal $15 million a year for two years and between $5 million and $15 million in the third year as long as he was not employed by a competitor. He agreed to take a job at Uber about a year after his departure, then resigned from the ride-hailing company a few weeks later when the sexual-harassment claim at Google became public.
Singhal left Google after an employee said he had groped her at an off-site event. Google investigated the allegation and found that Singhal had been inebriated. The company also concluded that the employee’s account was credible. At the time, Singhal said he wanted to spend more time with his family and focus on his philanthropy.
Singhal did not respond to a request for comment.
The suit also cited board meeting minutes confirming the Times’ report of the $90 million exit package for Rubin. A Google employee with whom he was having an extramarital relationship accused him of coercing her into oral sex. She filed a complaint, and the company’s investigation found her account to be credible. The separation agreement for Rubin was also contingent on his agreeing to refrain from working with rivals.
“This lawsuit simply repeats much of the recent media coverage, mischaracterizes Andy’s departure from Google and sensationalizes claims made about Andy by his ex-wife,” Rubin’s lawyer, Ellen Stross, said in a statement Monday. “Andy acknowledges having had a consensual relationship with a Google employee. However, Andy strongly de- nies any misconduct, and we look forward to telling his story in court.”
The payout for Rubin sparked widespread outrage at Google and, last fall, prompted a walkout of 20,000 employees who demanded that the company improve its handling of harassment claims. After the walkout, Google ended its practice of forced arbitration for claims of sexual harassment or assault.
Google Walkout for Real Change, the organizer of the walkout, said in a statement Monday: “The details of these outrageous exit packages, signed off personally by Google’s executives, are a symptom of a culture that protects and awards all harassers. Google is badly in need of accountable leadership and real, systemic changes.”
The lawsuit also provided a window into the workings of Alphabet’s board and the power exerted by Larry Page, a co-founder of Google and Alphabet’s chief executive.