Khaberni - In a move reflecting absolute confidence in his vision for the future of artificial intelligence, American company "Alphabet" - the parent company of Google - announced granting its CEO, Sundar Pichai, a historic compensation package totaling $692 million.
This step not only places him at the top of the list of the highest-paid CEOs in the technology sector but also makes him one of the most influential and wealthy leaders in the history of global companies.
Pichai has been the CEO of Google since 2015, and has also served as the CEO of the parent company Alphabet since 2019, succeeding the company's founders Larry Page and Sergey Brin.
How will Pichai receive his money?
This astronomical figure is not based on a traditional cash salary but rather a complex mix of performance-linked bonuses and subsidiary company stocks, spread over the next three years:
• Waymo and Wing bets: For the first time in company history, nearly $175 million of the package is tied to the success of "Other Bets" projects. If the autonomous vehicle company "Waymo" and the drone company "Wing" achieve certain growth targets, this amount could double based on the market value of these companies.
• Market outperformance bonus: The package includes Performance Stock Units (PSUs) with a target value of $126 million, but they are designed to reach $252 million if Alphabet's stock continues to outperform the S&P 100 index, ensuring shareholder and Pichai's mutual interests.
• Base salary and restricted stocks: The cash salary remains fixed at $2 million annually, added to it are periodic stock incentives ensuring his continuity in the position at least until 2029.
Why now?
This announcement comes at a critical time for the "Search Empire" and analysts believe this substantial amount aims to achieve three main objectives:
• Fortifying leadership in the AI era: As the competition with OpenAI and Microsoft intensifies, Alphabet wants to ensure the stability of its top leadership under the guidance of the person who shifted the company from a "search engine" to an "AI-first company".
• Transitioning "experiments" into profits: Linking bonuses to Waymo and Wing sends a clear signal to investors that these projects are no longer just laboratories of innovation but are upcoming pillars for profit growth.
• Rewarding historic growth: Since Pichai took office in 2015, the market value of the company has soared from about $500 billion to surpass the $3.6 trillion mark at the start of 2026, an incredible achievement that justifies this exceptional reward from the board.
While shareholders see Pichai as deserving every dollar for the returns he has achieved for them, this package raises questions about the growing gap between CEO salaries and average employee wages, especially in light of recent restructuring in the tech sector.
However, the bet now rests on Pichai's ability to turn these millions into additional trillions in Alphabet's treasury.
