Sundar Pichaithe chief executive of Google and its parent company Alphabet Inc.could earn up to $692 million over the next three years under a new compensation plan.
The package was disclosed in a filing with the U.S. Securities and Exchange Commission (SEC). If the plan reaches its full value, Pichai would become one of the highest-paid CEOs in the global technology industry.
Breakdown of the Compensation Plan
The filing states that Pichai’s base salary will remain unchanged.
Most of the compensation will come from Alphabet stock and performance-based incentives.
The value of the package depends largely on Alphabet’s stock performance and dividend payouts during the three-year period.
Stock Incentives From Alphabet Subsidiaries
The compensation plan also includes shares from two major Alphabet subsidiaries:
According to the SEC filing:
Combined, the subsidiaries may contribute nearly $175 million to the overall compensation package.
However, the final value will depend on the performance of the companies and their share prices.
Conditions if Sundar Pichai Is Dismissed
The SEC document also outlines the conditions if Pichai leaves the company before the end of the compensation period.
If he is dismissed, he would lose all stock options that have not yet vested or become exercisable. This means a significant portion of the package could be forfeited.
Alphabet Credits Pichai’s Leadership
In the filing, Alphabet highlighted the impact of Pichai’s leadership.
The company said the incentive structure has benefited both Alphabet and its shareholders in the past. The new package is designed to align executive compensation with long-term company performance.
Under Pichai’s leadership, Alphabet has expanded its focus on artificial intelligence, cloud computing, and advanced technologies.
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