Alphabet CEO could earn $336 million over the next 3 years
Performance targets must be met to earn up to $330 million in stock
Alphabet CEO Sundar Pichai is set to rake in hundreds of millions of dollars over the next three years if he hits performance targets laid out by the company.
Pichai will earn a $2 million base salary beginning in 2020, and could earn an additional $330 million in stock compensation if certain performance metrics are reached. In total, that would mean a $336 million haul during the next three years if Pichai's base salary stays the same and he earns the maximum in rewards.
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On Wednesday, Pichai was granted an award of two performance stock unit tranches, worth $45 million apiece. The tranches can vest at up to 200 percent of their target value, depending on how Alphabet shares perform relative to the rest of the S&P 100, according to a Securities and Exchange Commission filing released Friday. In total, those rewards have the chance to be worth as much as $180 million.
Pichai will also have the opportunity to earn restricted stock units worth $120 million. Those units will vest at a 1/12 quarterly rate beginning March 25, 2020, and that will continue through every quarter until they are fully vested, so long as he remains employed.
A transitional award of $30 million of restricted stock units will vest at a 1/4 quarterly rate beginning on March 20, 2020. Once vested, all restricted stock units will become Class C shares.
Pichai was named Alphabet CEO after co-founders, Larry Page and Sergey Brin, relinquished their executive roles earlier this month. He retained his role as Google CEO when he took the reins at the parent company Alphabet.
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Pichai earned $1.9 million in 2018, according to the Bloomberg Pay Index.