Google’s parent company, Alphabet, has arranged a new three-year compensation package for CEO Sundar Pichai, potentially reaching a value of $692 million. This agreement could position Pichai as one of the highest-paid executives globally if specific performance targets are achieved. The majority of the compensation is linked to long-term stock incentives, with notable grants associated with Alphabet’s self-driving car business, Waymo, and its drone delivery unit, Wing.
According to a filing with the US Securities and Exchange Commission, Pichai’s annual salary will remain at $2 million, with no annual bonus planned. Instead, Alphabet has structured the package to include triennial equity awards. This consists of two sets of performance stock units valued at $63 million each, $84 million in restricted stock units, and additional “bet performance units” related to Waymo and Wing, with target values of approximately $130 million and $45 million, respectively. The performance awards are subject to vesting between 0% and 200% based on actual results.
Alphabet stated that the compensation package was designed to acknowledge Pichai’s performance and to enhance his focus on expanding the company’s more established “Other Bets” ventures. The filing emphasized the progress made by Waymo and Wing under Pichai’s leadership, indicating that incentivizing him to develop these operations aligns with shareholders’ interests.
Furthermore, the compensation package highlights the substantial growth in Alphabet’s value during Pichai’s tenure. Reports indicate that the company’s market capitalization surged from about $535 billion when Pichai assumed the role of Google CEO in 2015 to $3.6 trillion, briefly surpassing $4 trillion in January.
Amidst these developments, Google’s co-founders, Larry Page and Sergey Brin, have attracted attention for their high-value real estate acquisitions in Miami. Page reportedly acquired two homes in Coconut Grove for $173.4 million, while Brin was linked to a $51 million waterfront mansion in Miami Beach. These purchases coincide with discussions surrounding a proposed California ballot measure that could impose a one-time tax of up to 5% on certain individuals and trusts with assets exceeding $1 billion.
Despite his significant wealth accumulated through Alphabet’s soaring share price, Pichai has maintained a relatively low profile compared to the company’s founders. Reports indicate that he became a billionaire, with his stake in the company valued at around $440 million at the time, having sold more than $650 million worth of Alphabet stock since assuming the role of CEO.
