Alphabet (GOOG) (GOOGL) CEO Sundar Pichai could earn up to $692M over the next three years, according to his new compensation package, making him one of the world’s highest-paid chief executives.
The package includes two tranches of Alphabet (GOOGL) performance stock units with a target value of $63M each. The PSUs depend on Alphabet’s total shareholder return relative to S&P 100 companies during 2026-2027 for the first tranche and 2026-2028 for the second.
The number of PSUs that vest in a tranche will range from 0%-200% of target depending on Alphabet’s relative performance, and may not vest at all if it underperforms.
Pichai will receive $84M in restricted stock units, which will vest over three years on a monthly basis subject to continued employment.
His pay package also includes stock incentives worth about $130M and $45M tied to the growth of Alphabet’s (GOOGL) robotaxi unit Waymo (WAYMO) and drone delivery startup Wing Aviation, respectively.
The number of “Bet performance units” that will vest will be determined based on Waymo’s and Wing’s increase in per unit value over three years. This could pay out up to 200% of the target number of BPUs.
“The grant of Waymo and Wing BPUs further supports Alphabet’s long-standing goal of investing in new technologies,” the company stated. “Waymo and Wing are tackling enormous challenges in autonomous driving and delivery, have made strong progress under Pichai’s supervision, and show strong potential.”
Pichai’s annual salary of $2M remains unchanged since 2020 and he is not eligible for an annual bonus.