Alphabet offers Sundar Pichai pay package worth up to $692 million: FT

Synopsis

Alphabet plans to award Sundar Pichai a pay package that could reach $692 million over three years. The deal includes performance stock units, restricted stock and incentives tied to Waymo and Wing Aviation. The plan comes as Alphabet reports strong profits and rising market value since Pichai became chief executive in 2015.

By ETtech

Mar 07, 2026, 10:11:00 AM IST

Sundar Pichai is set to receive a pay package from Alphabet that could reach as high as $692 million over the next three years, placing him among the highest-paid chief executives globally.

According to a report by the Financial Times, a large portion of the package is tied to performance stock units (PSUs) with a target value of $126 million. These are split into two equal parts, with the final payout linked to Alphabet’s performance relative to companies in the S&P 100 index. If Alphabet significantly outperforms peers, the payout could rise to $252 million, while weak performance could reduce it to zero.

Pichai will also receive $84 million in restricted stock over the same three-year period. These shares will vest monthly as long as he continues with the company. His annual salary will remain $2 million.

Alphabet’s board told the FT, “Waymo and Wing Aviation are tackling enormous challenges in autonomous driving and delivery and have made strong progress under Mr Pichai’s supervision. Further incentivising Mr Pichai is in the best interests of Alphabet and its stockholders.”

Alphabet has also introduced two new incentive programmes tied to its emerging technology businesses, which could together be worth up to $350 million in additional stock rewards.

Under this plan, Pichai will receive stock linked to the value of Waymo, Alphabet’s self-driving taxi unit, with a target value of $130 million. He will also be granted $45 million in shares tied to Wing Aviation, the group’s drone delivery business. The final value will be determined based on their “fair value” three years from now, with payouts potentially reaching 200% of the target if performance exceeds expectations.

Taken together, the compensation plan means Pichai could receive up to $692 million if all targets are met. The guaranteed baseline amount is estimated at about $391 million, including stock awards and salary.

The pay package comes amid strong financial performance at Alphabet. The company reported fourth-quarter profit rising 30% year-on-year to $34.5 billion, or $2.82 per share, while revenue increased 18% to $113.8 billion. Since Pichai became CEO in August 2015, Alphabet’s market value has grown from $535 billion to about $3.6 trillion, briefly crossing $4 trillion in January. The surge has also pushed Pichai’s personal wealth into billionaire territory.

Other technology leaders earn significantly less. Satya Nadella earned $96.5 million in Microsoft’s fiscal 2025, including about $84 million in stock awards, up from $48.5 million the previous year. Meanwhile, Tim Cook received $74.3 million in 2025 from Apple.