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Sundar Pichai’s pay package could reach $692 million over 3 years
Sundar Pichai will receive $84 million in restricted stock, which will vest monthly over the three years, along with an annual base salary of $2 million.
Earlier this week, Sundar Pichai sold 32,500 Class C shares worth about $9.8 million
Alphabet Inc reportedly hiked the potential compensation of Google chief Sundar Pichai to $692 million over the next three years, placing him among the highest-paid corporate executives globally.
According to a report by the Financial Times, the bulk of the package will come from performance stock units (PSUs) valued at $126 million, which are divided into two equal tranches. The report added that these PSUs are tied to Alphabet’s total shareholder return relative to the S&P 100 index.
If performance targets are exceeded, the value of these stock units could double to $252 million, while failure to meet the benchmarks could result in no payout, the report said. In addition, Pichai will receive $84 million in restricted stock, which will vest monthly over the three years, along with an annual base salary of $2 million.
Alphabet has also introduced new stock incentives worth up to $350 million, linked to the growth of the company’s autonomous ventures. As part of this package, Pichai is set to receive $130 million in stock from Waymo and $45 million in shares from Wing Aviation. Both awards could pay out up to 200 per cent of their target value, depending on performance.
Alphabet’s board said the incentives reflect the company’s confidence in Pichai’s leadership of the two businesses. The company described the projects as “tackling enormous challenges in autonomous driving and delivery under his supervision, the report said.
Pichai, who joined Google in 2004 after a stint at McKinsey & Company, played a key role in developing the company’s flagship browser, Google Chrome, and later led the development of the Android operating system before rising to the top job.
Earlier this week, Pichai sold 32,500 Class C shares worth about $9.8 million. According to reports, he and his wife currently hold around 1.67 million Google shares, valued at roughly $498 million based on Friday’s closing price of $298 per share.
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