Google grants CEO massive $692m compensation plan

Sundar Pichai pay deal could reach $692m over three years under a new Alphabet compensation plan filed with the US SEC

Sundar Pichai, Chief Executive Officer of Google and its parent company Alphabet, could earn up to $692 million over the next three years under a new executive compensation plan disclosed in a filing with the US Securities and Exchange Commission (SEC).

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The proposal, published on Friday, would place Pichai among the highest-paid chief executives globally if the full value of the package is realised.

According to the filing, Pichai’s base salary will remain unchanged at $6 million over three years, equivalent to $2 million annually.

The majority of the compensation will instead come through stock-based incentives tied to Alphabet and two of its subsidiaries.

The package includes shares linked to Waymo, Alphabet’s autonomous vehicle company, and Wing, its drone delivery service.

The SEC filing indicated that Pichai could receive approximately $130 million in equity from Waymo and about $45 million from Wing, depending on the companies’ performance.

A significant portion of the compensation will also be tied to Alphabet stock, with the final value influenced by share performance and the level of dividends paid to investors.

The structure of the plan is designed to align executive rewards with the long-term performance of the company and its subsidiaries.

However, the filing noted that in the event of dismissal, Pichai would forfeit all stock options that have not yet become exercisable.

Alphabet defended the structure of the package in the regulatory document, stating that previous incentive arrangements linked to the Sundar Pichai pay deal had delivered strong returns for the company and its shareholders.

“Current and previous incentives in Mr Pichai’s compensation have benefited Alphabet and its stockholders significantly,” the company said in the filing.

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Pichai has served as Google’s chief executive since 2015 and became CEO of Alphabet in 2019, overseeing the company’s expanding portfolio of technology ventures spanning artificial intelligence, cloud computing, autonomous vehicles and advanced logistics.

Quadri Olaitan