Inside Google’s $692m Pay Deal for CEO Sundar Pichai

Sundar Pichai’s new pay package could be worth US$692m. 

The figure, which will make him one of the highest paid CEOs worldwide, was revealed in a new compensation plan filed by Google parent company Alphabet with the US Securities and Exchange Commission (SEC). 

While Sundar’s previous pay plans were mostly tied to Alphabet’s overall stock price, this new three-year package shows a distinct move away from ‘just’ running Google to growing future operations.

Pay for the CEO is now linked to the performance of two of Alphabet’s other businesses: autonomous driving startup Waymo and drone delivery company Wing. 

The SEC filing, dated 4 March, says: “The committee recognises Mr Pichai’s strong performance as CEO.” 

It adds: “Current and previous incentives in Mr Pichai’s compensation have benefitted Alphabet and its stockholders significantly. 

“In making this award, the committee has determined that further incentivising [him] to focus on his efforts on developing and scaling Alphabet’s later stage ‘other bets’, such as Waymo and Wing, is in the best interests of Alphabet and its stockholders, and is designed to maximise long-term stockholder value.”

Three-year plan

Under Alphabet’s plan, Sundar’s three-year salary of US$6m – or US$2m per year – will remain unchanged. 

The remainder of his compensation will be paid in the form of Alphabet stock. The bulk comes in performance stock, with a total targeted value of US$126m divided across two tranches. 

Payouts will depend on Alphabet’s total shareholder return and could not vest at all or pay as much as twice the target, or US$252m. 

Sundar will also receive US$84m in restricted stock over the three-year period so long as he remains at the company. 

Startup rewards

The real financial difference in the CEO’s latest pay package comes from two bet performance units – a specialised type of performance-based stock awards – on startups Waymo and Wing. 

Waymo is Alphabet’s autonomous driving subsidiary, widely considered the industry leader in "robotaxis." 

Originally born as the Google Self-Driving Car Project, it now operates fully driverless commercial ride-hailing services in several major U.S. cities. By replacing human drivers with advanced AI, Waymo aims to redefine urban mobility and logistics.

Wing is an on-demand drone delivery subsidiary, focused on transforming logistics through autonomous aerial transport. 

Designed for last-mile delivery, its lightweight aircraft ferry essentials via a national network with partners like Walmart.

Sundar will receive stock in Waymo with a target value of US$130m and US$45m in Wing.

In the SEC filing Alphabet says: “Waymo and Wing are tackling enormous challenges in autonomous driving and delivery, have made strong progress under Mr Pichai’s supervision, and show strong potential.”

Since becoming CEO of Google in 2015 and Alphabet in 2019, Sundar has overseen a period of unprecedented financial expansion, with Alphabet recently crossing a US$2tn market valuation. 

His leadership is defined by a shift from the company's roots in desktop search to a dominant mobile ecosystem and a massive investment in cloud computing.

Sundar originally joined Google in 2004, where he gained internal fame by building the Chrome browser from scratch, a move that secured Google’s gateway to the internet. 

He later took over the Android division, integrating it into the core of the company’s business model. 

Today, his tenure has made him a rare non-founder billionaire with a net worth exceeding US$1.5bn.