Alphabet's compensation committee has approved a new triennial equity award for CEO Sundar Pichai, with a significant portion tied to the performance of its Other Bets, Waymo and Wing. The award consists of Alphabet performance and restricted stock units, and new performance units linked to the valuation growth of the autonomous driving and drone delivery subsidiaries. Mr. Pichai's annual salary remains unchanged at $2,000,000.
Key Details
- Alphabet Equity: Mr. Pichai was granted Alphabet Performance Stock Units (PSUs) with a target value of $126 million and Restricted Stock Units (GSUs) valued at $84 million. The PSU vesting is tied to Alphabet's total shareholder return relative to the S&P 100.
- Other Bets Incentives: The award introduces new Bet Performance Units (BPUs) with a target value of approximately $130 million for Waymo and $45 million for Wing. Vesting is contingent on the valuation growth of each unit over a three-year period.
- Performance Metrics: The number of performance-based units (PSUs and BPUs) that ultimately vest can range from 0% to 200% of the target, based on achieving specific performance goals.