Google CEO Sundar Pichai's ₹6,361 Crore Pay Package Hinges on Meeting Key Performance Targets

Google and Alphabet CEO Sundar Pichai to Receive Up to $692 Million in Compensation

Key Highlights

• Sundar Pichai, CEO of Google and Alphabet, is set to receive a compensation package of up to $692 million over the next three years.
• The package consists of a base pay, PSU (Performance Stock Units) awards, and a time-based equity package.
• The compensation is subject to Alphabet's performance, with PSU awards valued based on the company's total shareholder return compared to other companies in the S&P 100.

Compensation Breakdown

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• $6 million fixed component of Pichai's equity-tied salary, paid annually over three years.
• Up to $252 million in Alphabet stock and PSU awards, with potential payouts from Waymo and Wing stock.
• $84 million time-based equity package if Pichai stays with the company for the next three years.

Performance-Based Payouts

• PSU awards could pay up to twice the target amount, or $252 million, if Alphabet outperforms its peers.
• Payouts from Waymo and Wing could range from $130-260 million and $45-90 million, respectively, depending on the performance of the shares.
• The upper end of the payout range is 200% of the target value if performance goals are met or exceeded.

Stock Ownership

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• Pichai and his wife Anjali collectively own 1.67 million Google shares, valued at $498 million based on Alphabet's Friday closing stock price.

Background

• Pichai has headed Google since 2015 and Alphabet since 2019.
• Under his leadership, Google's market capitalization has grown 7x from $535 billion to $3.6 trillion over the past decade.
• Pichai's personal wealth is estimated to be $1.5 billion, with a significant portion coming from his ownership of Alphabet shares.