Alphabet’s board has approved a new compensation package for CEO Sundar Pichai, maintaining his annual salary at $2 million while introducing substantial equity awards. The package underscores Pichai’s leadership and aims to incentivize his focus on Alphabet’s strategic ventures, particularly its ‘Other Bets’ like Waymo and Wing.
The Leadership Development, Inclusion and Compensation Committee of Alphabet’s board has granted Pichai performance stock units (PSUs) and restricted stock units (GSUs) with target values unchanged from 2022. The PSUs, valued at $63 million per tranche, are tied to Alphabet’s total shareholder return relative to S&P 100 companies. These awards will vest based on performance over periods ending in 2027 and 2028, with potential vesting ranging from 0% to 200% of the target.
The GSUs, valued at $84 million, will vest incrementally over three years, subject to Pichai’s continued employment. Additionally, Pichai received Bet Performance Units (BPUs) for Waymo and Wing, valued at $130 million and $45 million, respectively. These BPUs will vest based on the increase in per unit value over a three-year period, with potential vesting from 0% to 200% of the target.
These awards reflect Alphabet’s commitment to advancing its technological innovations and Pichai’s pivotal role in steering the company’s ambitious projects. The board will continue to oversee these initiatives to ensure alignment with shareholder interests. In case of Pichai’s death, all unvested GSUs will vest immediately, while performance-based equity will vest at target or based on actual performance if the period has ended. If terminated without cause, Pichai will be eligible for pro-rata vesting based on actual performance.
The details of these awards will be included in Alphabet’s quarterly report for the fiscal quarter ending March 31, 2026.
Disclaimer: This article is based on a Form 8-K filing submitted to the U.S. Securities and Exchange Commission (SEC).
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