Alphabet ties a portion of Sundar Pichai’s pay to Waymo for the first time
By tying up to $260 million of its CEO’s pay to Waymo, Alphabet is making clear the autonomous vehicle unit is no longer just an “Other Bet.”
Alphabet and Google CEO Sundar Pichai’s salary this year remains a miserly $2 million. But with stock-based incentives — including Bet Performance Units tied to Waymo for the first time — his total payout could reach as much as $692 million over the next three years, potentially the largest pay package of his career, according to a new filing.
Alphabet’s board approved a $130 million Waymo BPU grant that vests based on growth in Waymo’s per-unit valuation over three years and can pay out at up to 200% of the target — pushing its potential value to $260 million. The compensation package also included $45 million BPUs for Wing, its drone delivery service.
Both Waymo and Wing are part of the company’s “Other Bets” category, which houses Alphabet’s experimental and emerging businesses outside its core search and advertising operations. The segment has typically been a money-losing incubator, making the decision to link Pichai’s compensation directly its performance a clear sign that at least some of those bets are maturing.
Waymo’s expansion has been accelerating lately. The autonomous taxi service is currently available to the public in about 10 cities, with plans to expand to roughly 20 more. The push comes as competition in autonomous driving heats up, with Tesla also betting heavily that robotaxis will drive its next phase of growth.
