Million bucks: Here’s what Google CEO Sundar Pichai must achieve to unlock the full ₹6,361 crore pay package

Sundar Pichai, CEO of technology giant Google and its parent company Alphabet, could earn $692 million ( ₹He will receive a salary of Rs 6,361 crore over the next three years as part of the new compensation plan – subject to achievements which will unlock the entire salary package.

Compensation consists of a base salary, performance stock units (PSUs) awards and a time-based equity package.

According to AFP’s report, the plan submitted to the US Securities and Exchange Commission (US SEC) will make Pichai one of the highest-paid senior executives in the world. Pichai has been the head of Google since 2015 and Alphabet since 2019.

Salary breakdown announced: How will PSUs be evaluated?

• The fixed component of Pichai’s equity-based salary includes $6 million over three years, or $2 million annually.
• The bulk of the compensation package consists of Alphabet stock and PSU awards worth up to $252 million in stocks of Waymo (autonomous vehicles, robotaxi services) and Wing (drone delivery service).
• It also includes an $84 million time-based equity package if he stays with the company for the next three years.

PSUs are measured by comparing parent company Alphabet’s total shareholder return to other companies in the S&P 100. So if Alphabet significantly outperforms its peers, PSUs could pay out up to twice the target amount, or $252 million. But if the company falls behind, the payout could even drop to zero.

So Pichai will need to ensure that Alphabet and its subsidiaries (Google, Waymo, and Wings) perform well to win the entire package.

How and why are Waymo and Wing important to Pichai’s salary?

According to the SEC filing, Pichai could receive approximately $130-260 million from Waymo and $45-90 million from Wing, depending on the performance of the shares. The report stated that the allocation for Alphabet will depend on dividends paid.

Specifically, if business-related performance targets are met or exceeded, the upper end is 200% of the target value.

Additionally, if he is fired before the three-year term is up, Pichai would lose any stock options that have not yet been exercised, the filing showed. This massive payout is justified because Pichai’s current and previous incentives have “significantly benefited Alphabet and its shareholders,” according to the company.

According to the Business Insider report, the Waymo and Wings additions were added under the “Other Bets” heading. He added that the value of the award will depend on the compensation committee’s estimate of the per-unit value of Waymo and Wings shares.

Founded in 2009, Waymo, Google’s moonshot factory, has logged 200 million autonomous miles to date and has expanded into 10 urban markets in the US. Wings was founded in 2012 and aims to reach more than 270 Walmart stores by 2027.

The BI report noted that Alphabet no longer views the two as side projects, and noted that it described the move to add them to Pichai’s package as encouraging the businesses to “focus their development and scaling efforts.”

Sundar Pichai’s performance as Google chief is remarkable

Pichai Sundararajan, of Indian origin, joined Google in 2004 and rose quickly through four promotions over 11 years, eventually taking the helm in 2015. Over the past decade, under his leadership, Google increased its market value sevenfold, from $535 billion to $3.6 trillion; It briefly surpassed $4 trillion in January of this year.

The sharp increase in Google’s valuation over the years has also significantly increased Pichai’s personal wealth. According to the Forbes Real Time Billionaires list, the 53-year-old actor’s fortune is estimated to be $1.5 billion.

Pichai and his wife, Anjali, own 1.67 million shares of Google, worth $498 million based on the company’s closing stock price of $298 on Friday, according to filings with regulators.

Pichai grew up in Chennai, where his father worked as an electrical engineer and his mother worked as a stenographer before he and his younger brother were born. He holds a degree in metallurgical and materials engineering from IIT Kharagpur. He moved to the United States in 1993 and received a master’s degree from Stanford. He then went to the Wharton School of the University of Pennsylvania for his MBA.

(With input from institutions)