Broadcom (AVGO) revealed in a regulatory filing on Monday that CEO Hock Tan received a total compensation package of $205.3 million for fiscal 2025, representing a substantial increase from previous years due to the company’s growing prominence in the artificial intelligence (AI) industry.
This represents a staggering leap from his $2.63 million compensation in 2024, a year in which he didn’t receive stock awards.
The board has directly tied Tan’s future earnings to Broadcom’s AI performance: equity awards accounted for $202.4 million of Tan’s 2025 pay in stock-based compensation, with his salary remaining little changed at $1.2 million, Broadcom said in a regulatory filing Monday.
The board has linked CEO Tan’s earnings to the company’s success in AI. A new performance stock unit, given in September 2025, sets tough goals for the future: Tan will get a big payout if Broadcom makes $90 billion from AI products over four straight quarters between 2028 and 2030.
The payout could triple if AI sales go over $120 billion by 2030, which could be worth more than $600 million depending on the stock price at that time. If AI sales don’t reach $60 billion, Tan loses the entire award. This strategy aims to retain Tan until at least 2030 and align his goals with AI market growth.