This article first appeared on GuruFocus.
Alphabet (NASDAQ:GOOG) has rolled out a new long-term compensation package for CEO Sundar Pichai that could be worth as much as $692 million over the next three years, depending largely on the company’s stock performance and progress in some of its emerging businesses.
The plan is heavily tied to performance stock units . Pichai will receive two PSU grants with a target value of about $63 million each, tied to how Alphabet’s shareholder returns compare with other companies in the S&P 100 between 20262027 and 20262028. If Alphabet strongly outperforms peers, the payout could reach up to 200% of the target amount, though it could also end up at zero if the company underperforms.
Beyond that, Pichai will receive $84 million in restricted stock units, which will vest gradually over three years as long as he remains CEO.
The package also includes incentives tied to Alphabet’s experimental businesses. Roughly $130 million is linked to the growth of robotaxi unit Waymo, while $45 million is tied to drone delivery venture Wing.
