Alphabet Approves $692M Pichai Pay Package

Alphabet Inc. has approved a new three-year compensation package for CEO Sundar Pichai that could total up to $692 million, tying a significant portion of his pay to the performance of the company's core operations and its ambitious autonomous vehicle and drone delivery units.

The package, disclosed in a U.S. Securities and Exchange Commission filing on Friday, maintains Pichai's base salary at $2 million annually, unchanged since 2020. The remainder consists of equity awards designed to align his incentives with shareholder value and the growth of key subsidiaries. Pichai, who has led Google since 2015 and Alphabet since 2019, oversees a company whose market capitalization has expanded from about $535 billion to roughly $3.6 trillion during his tenure.

Under the plan, Pichai will receive $84 million in restricted stock units that vest monthly over three years, provided he remains with the company. A performance-based component includes stock units with a target value of $126 million, which could double to $252 million if Alphabet's total shareholder return outperforms peers in the S&P 100 index over the period. If performance falls short, this portion would pay out nothing.