Google-parent Alphabet has approved the plan to link more of Chief Executive Officer Sundar Pichai's pay to performance, news agency Reuters reported on December 22. The new equity award comes as the board recognises Pichai's "strong performance" as CEO, according to the company.
It also added that "the vesting of a significant portion of the award would depend on Alphabet's total shareholder return relative to other S&P 100 companies," as per Reuters.
Further, Alphabet said the award was tweaked to increase the performance stock units (PSUs) to 60 percent from 43 percent in 2019, while increasing the performance requirement for the payout.
Pichai, who is given an equity award every three years, was granted two tranches of PSUs with a target value of $63 million each, the report added.
The CEO was also given a grant of $84 million in the form of Alphabet's restricted stock units.
In 2019, Alphabet had said Pichai will receive $240 million in stock awards over the next three years if he hits all of his performance targets, as well as a $2-million annual salary beginning in 2020, Bloomberg had reported.
Pichai joined Google in 2004 and helped lead the development of Google Toolbar and then Google Chrome, which grew to become the world’s most popular internet browser. He became Google’s CEO in August 2015. He joined the Board of Directors of Alphabet, Google’s parent company, in July 2017.
Recently, Pichai met India's Prime Minister Narendra Modi and expressed that he looks forward to "continuing our strong partnership and supporting India's G20 presidency."
Pichai was visiting India for the annual Google for India event that took place on December 19. During his meet with the prime minister, Pichai assured his support for making an open and connected internet that works for all.
(With inputs from Reuters)
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