Alphabet approved a $692 million triennial pay package for CEO Sundar Pichai
The deal includes a $2 million base salary with no annual cash bonuses
Performance stock units (PSUs) worth $126 million depend on S&P 100 relative returns
For the first time, $175 million in incentives are tied to Waymo and Wing
Alphabet CEO Sundar Pichai could receive a compensation package worth up to $692 million over the next three years under a new pay structure approved by Alphabet’s board, potentially making him one of the highest-paid chief executives globally, FT reported.
The package is largely performance-linked and tied to Alphabet’s financial results as well as the growth of its emerging technology ventures.
2 March 2026
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The bulk of Pichai’s compensation will reportedly come through performance stock units (PSUs) with a target value of $126 million. These awards will be measured against Alphabet’s performance relative to companies in the S&P 100 index. If Alphabet significantly outperforms its peers, the payout from these stock units could rise to $252 million, while weaker performance could reduce the award to zero.
In addition, Pichai will receive $84 million in restricted stock, which will vest monthly over three years provided he remains with the company, along with his $2 million annual salary.
A substantial portion of the compensation package is also linked to the success of Alphabet’s emerging technology divisions, particularly autonomous mobility and drone logistics.
Incentive programmes tied to Waymo and Wing Aviation could together add up to $350 million in stock rewards. Under this plan, Pichai would receive shares in Waymo with a target value of $130 million and $45 million in shares linked to Wing, with payouts potentially reaching 200% of the target depending on the valuation of these businesses three years from now.
Alphabet’s board said the incentives reflect the strategic importance of these ventures and the progress achieved under Pichai’s leadership in areas such as autonomous driving and delivery technology.
The compensation decision comes amid strong financial performance at Alphabet.
The company recently reported fourth-quarter profits rising 30% year-on-year to $34.5 billion, while revenue grew 18% to $113.8 billion. Since Pichai became CEO in 2015, Alphabet’s market capitalisation has expanded from about $535 billion to roughly $3.6 trillion, briefly crossing the $4 trillion mark earlier this year.
Despite leading one of the world’s most valuable technology companies, Pichai maintains a relatively low public profile compared with Google’s co-founders, Larry Page and Sergey Brin. The surge in Alphabet’s valuation has nonetheless made Pichai a billionaire, with regulatory filings showing that he and his wife hold Google shares worth nearly $500 million.
