New Delhi: Google has approved a new compensation package for Chief Executive Officer Sundar Pichai that could be worth as much as $692 million over the next three years, making him one of the highest-paid executives globally. The package is largely tied to company performance and the growth of key businesses under Alphabet.
The new pay structure includes a mix of performance-based stock units, restricted stock, and incentives linked to Alphabet’s emerging ventures. The company’s board said the compensation plan is designed to reward long-term growth and leadership as the tech giant expands its artificial intelligence and autonomous technology businesses, reported by Financial Times.
Performance-based stock awards form the largest share
Most of the package comes from performance stock units (PSUs) valued at $126 million, which are split into two equal tranches. These awards depend on Alphabet’s total shareholder return compared with companies in the S&P 100.
In case Alphabet has performed immensely compared to that of the peers, the payout would be to the tune of $252 million. Nevertheless, the award may also decrease to zero in case of poor performance by the company. Also, Pichai will be awarded $84 million in restricted shares, which will be unlocked over a period of three years, and an annual salary of $2 million as well.
Incentives linked to Waymo and Wing growth
Alphabet has also implemented new rewarding initiatives based on the expansion of its forward-looking business units. The highest level of stock rewards is $350 million available to Pichai tied to the performance of Waymo, the self-driving taxi business, and Wing, a drone delivery service of the company.
The plan will provide the CEO with stock valued at a target amount of $130 million in Waymo, plus $45 million in Wing Aviation, as both will be valued after three years. Like the other stock incentives, such awards might be granted up to 200 per cent of the target value in case performance is above the expectations.
The board of Alphabet stated that Waymo and Wing are addressing significant issues in the field of autonomous transport and delivery, and the motivation of the leadership in such spheres is within the best interests of the company.
Leadership during Google’s massive growth
Since coming to Google in August 2015, Pichai has managed the company, whose market value has increased dramatically in the last three years with an increase of about 360 billion to about 4 trillion, although briefly, earlier in the year. Growth has also assisted in making the Indian-born executive a billionaire.
He joined Google in 2004, and he was popularly known as the developer of Chrome and responsible for Android later. Though the company originally received a backlash over its slow response to the emergence of generative AI, the company has since picked up the pace of its AI approach and incorporated state-of-the-art models into its search and product ecosystem.
This is because Pichai is paid considerably higher than most other leaders in the technology industry. In 2025, Microsoft CEO Satya Nadella earned more than Apple CEO Tim Cook, who earned 74.3 million, and Microsoft CEO earned 96.5 million.
In the meantime, Google founders Sergey Brin and Larry Page continue to exercise massive control of Alphabet with super-voting shares, which provide approximately 56% of the decision-making rights of the company.