Google Grants Indian-Origin CEO Sundar Pichai Record-Setting Compensation Package

Google Boosts CEO Sundar Pichai's Compensation to $692 Million

Alphabet, the parent company of Google, has significantly increased CEO Sundar Pichai's total potential compensation to $692 million over the next three years. This makes him one of the highest-paid chief executives in the world.

Pichai's Compensation Breakdown

A major portion of Pichai's package comes in the form of performance stock units (PSUs) with a target value of $126 million. These PSUs are divided evenly into two tranches and are performance-linked, meaning their final value depends on how well Alphabet performs for shareholders. The PSUs will be valued by comparing Alphabet's total shareholder return with other companies in the S&P 100.

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Payout Potential

If Alphabet significantly outperforms its peers, the PSUs could pay up to twice the target amount, or $252 million. Conversely, if the company lags behind, the payout could even fall to zero. In addition to the PSUs, Pichai will also receive $84 million in restricted stock over the next three years, vesting roughly on a monthly basis as long as he remains at the company. He will also continue to draw an annual salary of $2 million.

Stock Incentives Linked to Growth

Google has added a pair of new stock incentives worth as much as $350 million, which is linked to the growth of its Waymo self-driving taxi arm and Wing drone delivery start-up. Pichai will receive stock in Waymo with a target value of $130 million and $45 million in Wing Aviation shares based on their "fair value" in three years' time. Both can pay out up to 200% of the target, giving the CEO a maximum payout of $692 million if he exceeds expectations.

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Current Net Worth

Pichai's current net worth stands at $1.5 billion, according to data available on Forbes.