【Google】CEO's annual salary remains at 15.6 million yuan, including stock incentives. Over the next three years, total compensation is expected to reach 5.3 billion yuan. What conditions must be met?

Google parent company Alphabet (US: GOOG) board approves CEO Sundar Pichai’s compensation package, with a base annual salary of $2 million, unchanged since 2020. However, including stock awards, the potential total compensation over the next three years could reach up to $692 million (approximately HKD 5.397 billion)!

According to the compensation plan, the main driver of Sundar Pichai’s potential total pay is performance stock units (PSUs), with a target value of $126 million, paid out in two installments. The final stock unit value will be determined based on Alphabet’s total shareholder return compared to the S&P 100 index.

In simple terms, if Alphabet performs well and significantly outperforms its industry peers, the stock value awarded to Sundar Pichai could double, with a maximum target value of $252 million. Conversely, if performance lags, the payout could be zero.

Incentives for Waymo and Wing development

Additionally, as long as Sundar Pichai remains at Alphabet, he will receive $84 million in restricted stock units (RSUs) over the next three years.

Alphabet has also added a new stock incentive valued at up to $350 million, related to the growth of its autonomous driving unit Waymo and drone delivery startup Wing. The performance-based units (BPUs) for Waymo and Wing have target values of approximately $130 million and $45 million, respectively. The actual value Sundar Pichai receives will also depend on the development of these subsidiaries, with a cap at twice the target value.

Alphabet’s board states that Waymo and Wing are tackling significant challenges in autonomous driving and delivery, making strong progress under Sundar Pichai’s supervision. They believe these incentive plans align with the best interests of Alphabet and its shareholders.

Alphabet’s market value has increased 5.74 times during Sundar Pichai’s leadership

Since Sundar Pichai became CEO in August 2015, Alphabet’s market capitalization has grown 5.74 times, from $535 billion to $3.61 trillion, briefly reaching $4 trillion in January this year.