Alphabet ties CEO pay to drone and autonomous car performance in major shift

Alphabet CEO Sundar Pichai is set to receive a new performance-based equity pay package worth up to $692 million, marking a significant shift in how Google’s parent company rewards its top executive.

In a departure from previous structures, an SEC filing on Friday revealed that a substantial portion of the compensation is now directly tied to the financial success of "Other Bets," specifically the robotaxi firm Waymo and drone delivery service Wing.

Strategic shift to scaling

The board’s decision to link pay to these subsidiaries signals that Alphabet now views these ventures as scalable businesses rather than experimental "moonshots."

Pichai could be awarded up to $260 million based on the valuation growth of Waymo, which has recently expanded its commercial services to 10 markets across the United States.

A further $90 million is contingent on the performance of Wing, which plans to expand drone deliveries to hundreds of Walmart stores by 2027.

Compensation breakdown

Performance Stock Units: Up to $252 million tied to Alphabet’s total shareholder returns relative to the S&P 100.

Retention Equity: A time-based award of $84 million, provided he remains with the company for three years.

Base Salary: Fixed at $2 million, a figure that has remained unchanged since 2020.

The board stated that "incentivizing Mr. Pichai to focus his efforts on developing and scaling Alphabet's later-stage Other Bets, such as Waymo and Wing," aligns with the interests of stakeholders.

This record-breaking package underscores the company's commitment to dominating the future of autonomous transport and logistics.