Sundar Pichai is one of the highest-paid executives in the world. Alphabet today outlined his new compensation package for the expanded role he’s taking on as CEOs of both Google and the parent company.
For the past several years, Pichai was paid an annual CEO salary of $650,000. According to an SEC filing made today, “his expanded role as CEO of Alphabet and Google” will see that amount increase to $2 million per year from 2020 onwards.
Like other executives, the real compensation is through stock. Specifically, stock earned as long as the company meets certain performance metrics, or performance stock units (PSUs).
On December 19, Pichai was “granted an award consisting of two tranches of PSUs with a target value of $45,000,000 each.” The first is based on 2020-2021 performance of Alphabet stock “relative to the companies comprising the S&P 100,” while the second is from 2020-2022.
Meanwhile, he is also receiving restricted stock units (GSUs) to the tune of $120 million in quarterly increments starting next year, and an additional transitional $30 million.
These GSUs will vest as follows: 1/12th will vest on March 25, 2020, and an additional 1/12th will vest quarterly thereafter until fully vested, in each case subject to continued employment.
Mr. Pichai also will be granted a transitional award of $30,000,000 in the form of GSUs with the exact number of GSUs calculated as set forth above. These transitional GSUs will vest 1/4th on March 25, 2020, and an additional 1/4th will vest quarterly thereafter until fully vested, in each case subject to continued employment.
This makes for a total of $240 million in possible stock for Sundar Pichai over the coming years on top of annual CEO salary. Before today, the Google and Alphabet CEO’s net worth was already valued at $600 million.
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