Mumbai, Mar 07 : Sundar Pichai, the chief executive of Alphabet Inc., could receive a compensation package worth up to $692 million over the next three years under a new incentive plan reported by the Financial Times.
The proposed package would place Pichai among the highest-paid corporate leaders globally if all performance targets are achieved.
Stock based incentives form major portion
According to the report, a significant part of the compensation is linked to performance stock units valued at $126 million. These shares are divided into two parts and their final value will depend on Alphabet’s performance compared with companies in the S&P 100.
If the company strongly outperforms its peers, the payout from these units could rise to about $252 million. However, the value could drop to zero if performance falls short of expectations.
In addition to performance linked incentives, Pichai will receive around $84 million in restricted stock over three years. These shares will vest monthly as long as he remains with the company, while his annual base salary will continue at $2 million.
New incentives tied to emerging businesses
Alphabet has also introduced additional stock based rewards linked to the progress of its emerging technology ventures.
Under the plan, Pichai will receive shares tied to the valuation of Waymo, the company’s autonomous driving unit, with a target value of $130 million. Another $45 million in stock is connected to Wing Aviation, Alphabet’s drone delivery service.
The final payouts for these incentives will depend on the businesses’ market value in three years and could reach up to 200 percent of the target amount if performance exceeds expectations.
Total compensation could reach $692 million
If all incentive goals are met, the overall value of the compensation package could reach $692 million. The guaranteed portion of the package is estimated at about $391 million, including stock awards and salary.
Strong company performance
The proposed pay plan comes during a period of strong financial growth for Alphabet. The company recently reported fourth-quarter profit rising by 30 percent year-on-year to $34.5 billion, while revenue climbed 18 percent to $113.8 billion.
Since Pichai became CEO in 2015, Alphabet’s market value has increased dramatically, growing from about $535 billion to roughly $3.6 trillion.
Comparison with other tech CEOs
The compensation level is notably higher than those of other technology leaders. Satya Nadella, CEO of Microsoft, earned $96.5 million in fiscal 2025, while Tim Cook of Apple Inc. received $74.3 million in the same period.
If approved in full, the new incentive plan would mark one of the largest executive compensation packages in the technology industry.