Google CEO Sundar Pichai Eligible for Up to $692 Million Under New Compensation Package

Alphabet Boosts Sundar Pichai's Compensation Package to $692 Million

Alphabet, the parent company of Google, has significantly increased Sundar Pichai's potential compensation to $692 million over the next three years, as per a regulatory filing with the US Securities and Exchange Commission (SEC).

The compensation package includes multiple stock-based incentives tied to shareholder returns and the performance of Alphabet's businesses. A significant portion of the package consists of Performance Stock Units (PSUs) with a target value of $126 million, divided into two equal tranches.

The PSUs are tied to Alphabet's total shareholder return compared with companies in the S&P 100. Under the plan, the payout could rise to twice the target amount, or $252 million, if Alphabet significantly outperforms peer companies. If the company underperforms, the PSU payout could fall to zero.

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In addition to PSUs, Pichai will receive $84 million in restricted stock over the next three years, which will vest roughly on a monthly basis, provided he continues to serve as chief executive of the company. He will also continue to receive an annual base salary of $2 million.

The package includes additional stock incentives tied to the growth of two of Alphabet's technology businesses: Waymo shares with a target value of $130 million and Wing Aviation stock worth $45 million. The payouts are linked to the fair value of the businesses over the next three years.

If all performance targets are achieved at maximum levels, Pichai's compensation over the three-year period could reach $692 million. The baseline value of the package, including stock incentives and salary, is $391 million.

Alphabet's market capitalisation has increased significantly since Pichai became chief executive in August 2015, from about $535 billion to roughly $3.6 trillion. The company's share price performance over the period has contributed to the value of stock-based executive compensation.

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