This article first appeared on GuruFocus.
Alphabet (GOOG, Financials) has approved a new compensation package for Chief Executive Sundar Pichai that could reach up to $692 million over the next three years, placing him among the highest-paid corporate leaders globally.
The bundle comes with two sets of performance stock units, each worth $63 million. These awards are based on how well Alphabet’s total shareholder return compares to those of firms in the S&P 100. The first part is for the years 2026 to 2027, while the second part is for the years 2026 to 2028.
The amount of shares that vest might be anything from 0% to 200% of the objective, depending on how well the firm does relative to its competitors. The prizes could not vest at all if Alphabet doesn’t do well.
Pichai will also get $84 million in restricted stock units that will vest over three years, as long as he stays with the firm.
Alphabet’s new technology divisions are also getting further incentives. Waymo, the self-driving car company, is responsible for nearly $130 million in stock awards, while Wing Aviation, the drone delivery company, is responsible for around $45 million.
Pichai’s base compensation is still $2 million, which hasn’t increased since 2020. The CEO is not eligible for an annual cash bonus.
