Alphabet Inc. has introduced a new compensation structure for CEO Sundar Pichai that could significantly raise his earnings over the next three years. According to a regulatory filing, the total value of the package could reach $692 million if the company meets key performance targets.
The new plan keeps parts of Pichai’s earlier compensation structure but adds fresh incentives linked to the growth of two emerging Alphabet businesses: Waymo and Wing. The move shows that Alphabet now views these ventures as potential growth drivers rather than experimental projects.
A major portion of the package comes from performance stock units valued at $126 million. These shares will pay out based on how Alphabet’s stock performs relative to companies in the S&P 100 index.
If Alphabet outperforms its peers, the value of these shares could rise to $252 million. However, weak stock performance could reduce the payout sharply or even eliminate it.
Pichai will also receive restricted stock worth $84 million during the same three-year period. Alphabet will distribute these shares gradually each month as long as he continues to serve as CEO.
Despite the new incentives, Pichai’s base salary remains unchanged at $2 million a year, a figure that has not changed since 2020.
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Alphabet has added separate incentives tied directly to the performance of Waymo, its autonomous driving business, and Wing, its drone delivery unit.
The CEO could receive Waymo-linked stock worth $130 million and another $45 million tied to Wing. Analysts say the final value of these awards could double if both businesses grow strongly over the next three years.
Waymo has already expanded robotaxi services across several US cities and logged more than 200 million autonomous miles. Wing continues to scale its drone delivery network and plans to reach hundreds of Walmart stores by 2027.
Alphabet’s board believes the revised pay structure will push leadership to accelerate the commercial growth of these advanced technology businesses.