Abstract

As the rapid growth of the significance of the technology sector in global economies gained prominence, this research stems from the need to align director compensation with the internet industry's distinctive characteristics. This article sets US internet companies as research targets and Alphabet as an example. By exploring these factors through quantitative and comparative analysis, this research provides insights into how internet companies shape their compensation strategies to thrive in the digital era. The compensation approach for directors in US internet firms includes equity rewards, cash retainers, stock ownership guidelines, and performance-linked perks. Transparency, benchmarking, and alignment with strategy are vital. This structure aims to lure skilled directors, align interests with shareholders, and enhance governance amidst tech's rapid evolution. Alphabet, Google's parent company, has recently advanced director compensation. Stock options and RSUs are increasingly granted, aligning with industry trends. Cash retainers provide stability. Alphabet's focus on equity-based incentives mirrors broader tech trends. These changes underscore Alphabet's strategy to retain adept directors who shape the company's growth and direction. This research can be used to address how compensation practices reflect the industry's innovation pace, adapt to regulatory changes, and foster effective governance.

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