New York: Alphabet Inc. has officially unveiled a massive new compensation plan for its CEO, Sundar Pichai, that could see him earn up to $692 million by 2029. According to a fresh filing with the US Securities and Exchange Commission (SEC) published this Friday, the deal positions Pichai among the highest-paid executives in global history.

Since taking over as Google CEO in 2015 and Alphabet CEO in 2019, Pichai has overseen a period of unprecedented growth. This new performance-based deal is designed to keep the tech visionary at the helm as the company pivots heavily toward Artificial Intelligence (AI) and autonomous technologies.

Breaking down the $692 million payout

The bulk of the compensation is tied to stock performance rather than cash. While Pichai’s annual base salary remains steady at $2 million ($6 million over three years), the real value lies in equity:

  • Alphabet Stock Performance Units: A target of $210 million in Alphabet shares, which could double to $336 million if the company outperforms the S&P 100.
  • Waymo Equity: For the first time, Pichai is heavily incentivized by the success of Alphabet’s self-driving subsidiary, Waymo, with a potential payout of $130 million.
  • Wing Drone Delivery: An additional $45 million is tied to the performance of Wing, Alphabet's drone delivery service.

Depending on the growth of these subsidiaries and Alphabet's dividend payouts, the total package could hit the maximum ceiling of $692 million.

The inclusion of Waymo and Wing in the CEO's pay structure marks a significant shift in Alphabet’s strategy. By tying Pichai's wealth to these "Other Bets," the board is signaling that the future of the company extends far beyond Google Search.

"Current and previous incentives in Mr. Pichai's compensation have benefited Alphabet and its stockholders significantly," the company stated in the SEC filing. Indeed, under his leadership, Alphabet’s market cap has soared, recently crossing the $3.6 trillion milestone.