Sundar Pichai’s compensation may climb to $692 million under Alphabet’s new three-year incentive plan

Alphabet chief executive Sundar Pichai could receive a compensation package worth up to $692 million over the next three years under a new incentive plan approved by the company’s board, potentially placing him among the highest-paid corporate leaders globally.

The package is heavily weighted toward stock-based incentives and long-term performance targets, reflecting Alphabet’s strategy to tie executive compensation to both financial performance and the growth of emerging technology businesses. The Financial Times first reported details of the compensation structure.

According to the report, a significant portion of the package is linked to performance stock units (PSUs) with a target value of $126 million. These stock awards will depend on Alphabet’s performance relative to companies in the S&P 100 index. If the company substantially outperforms its peers, the value of the stock units could rise to as much as $252 million, while weaker performance could reduce the payout to zero.

In addition to the performance-linked component, Pichai is expected to receive $84 million in restricted stock, which will vest monthly over three years provided he remains with the company. His base salary will remain $2 million annually, with no separate annual cash bonus.

A notable feature of the plan is its emphasis on Alphabet’s emerging technology ventures.  Incentives tied to the performance of Waymo and Wing Aviation could together add up to about $350 million in stock rewards, according to the Financial Times.

Under the structure, Pichai would receive Waymo shares with a target value of roughly $130 million and Wing-linked stock worth about $45 million. The payouts could reach as much as twice the target value depending on the valuation growth of the two businesses over the next three years.

Alphabet’s board said the incentive structure reflects the strategic importance of these businesses, which include autonomous driving technology and drone delivery services, and the progress made under Pichai’s leadership in expanding Alphabet’s technology portfolio beyond its core advertising business.

The compensation plan comes as Alphabet continues to report strong financial results. The company recently posted fourth-quarter profits rising 30% year-on-year to $34.5 billion, while revenue increased 18% to $113.8 billion.

Since Pichai became chief executive in 2015, Alphabet’s market capitalisation has expanded from roughly $535 billion to about $3.6 trillion, briefly crossing the $4 trillion mark earlier this year.

Despite overseeing one of the world’s most valuable technology companies, Pichai has maintained a relatively low public profile compared with Google co-founders Larry Page and Sergey Brin. Regulatory filings show that he and his wife already hold Google shares worth nearly $500 million.

The proposed incentive plan underscores how major technology companies are increasingly linking executive pay to long-term innovation bets, particularly in areas such as artificial intelligence, autonomous mobility and next-generation logistics.

For Alphabet, the structure signals that future leadership rewards will be closely tied not only to advertising growth but also to the success of its so-called “Other Bets” — businesses that could define the company’s next phase of expansion.