Alphabet handed Sundar Pichai a $692M pay package

"Sundar Pichai has run Google since 2015 and Alphabet since 2019. In that time, the company's market value has grown from roughly $535 billion to approximately $3.6 trillion. On Friday, Alphabet's board decided what that performance is worth going forward: a three-year pay package that could reach $692 million, but only if Pichai actually earns it."

"Most of the value is tied not to Alphabet's core search and advertising business, but to two subsidiaries that have spent years consuming capital without generating it: Waymo, the autonomous vehicle unit, and Wing, the drone delivery arm."

"The genuinely new element is the Waymo and Wing incentives. For the first time, Pichai's pay is directly linked to the per-unit valuation of both subsidiaries. The Waymo component carries a target value of $130 million, with a ceiling of $260 million if the business grows strongly. The Wing component has a target of $45 million, rising to $90 million at maximum performance."

Sundar Pichai, who has led Google since 2015 and Alphabet since 2019, received a three-year compensation package potentially worth $692 million, with most value contingent on performance metrics. His base salary remains $2 million annually, supplemented by $84 million in restricted stock units vesting over three years. A $126 million performance component ties to Alphabet's shareholder returns relative to S&P 100 companies. Notably, the package introduces unprecedented direct links to Waymo and Wing valuations, with Waymo incentives targeting $130 million (up to $260 million) and Wing targeting $45 million (up to $90 million). This structure reflects the board's decision to prioritize these loss-making subsidiaries as essential long-term bets.

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