A newly revealed compensation package could make Google and Alphabet chief executive Sundar Pichai one of the highest-paid corporate leaders in the world.
According to a filing released by the U.S. Securities and Exchange Commission, the tech giant’s leader may earn as much as $692 million over the next three years.
The announcement has drawn global attention because the amount places the Google boss among the most highly compensated CEOs in modern corporate history.
Meanwhile, most of the proposed earnings will not come from salary alone but from company shares and long-term incentives.
According to details contained in the filing, the Sundar Pichai compensation package will be heavily tied to stock performance. This means the final value will depend largely on how Alphabet and its subsidiaries perform in the market.
Despite the huge potential payout, Pichai’s base salary will remain unchanged. The document revealed that his annual salary will stay at $2 million per year. Therefore, his total salary over three years will amount to $6 million.
However, the majority of the compensation will come through stock awards and equity incentives. These shares will include holdings in Alphabet itself as well as two of its fast-growing subsidiaries.
Moreover, the plan includes stock linked to Waymo, Alphabet’s autonomous vehicle company. It also includes shares in Wing, the company’s drone delivery service.
According to the SEC filing, Pichai could receive around $130 million tied to Waymo’s performance. In addition, approximately $45 million could come from Wing shares.
Meanwhile, the final value of the package will depend on several financial factors. These include Alphabet’s share price performance and the amount of dividends paid during the three-year period.
Furthermore, the compensation agreement contains strict conditions. If Pichai were dismissed before certain dates, unvested stock options would be forfeited.
This means the full value of the Sundar Pichai compensation package can only be realised if he remains in the leadership role and meets performance requirements.
Alphabet defended the compensation structure in the official filing submitted to regulators.
“Current and previous incentives in Mr Pichai’s compensation have benefited Alphabet and its stockholders significantly,” the company said in the filing.
Meanwhile, Pichai has led Google since 2015 and later became CEO of Alphabet in 2019. During his tenure, the company has expanded into artificial intelligence, cloud computing, and autonomous technology.
Moreover, Alphabet has continued to grow its influence across global technology markets. Products such as Google Search, Android, YouTube, and Google Cloud remain central to the company’s revenue.
