Sundar Pichai, the CEO of Google, has once again made headlines, not for a new AI product but for his annual salary package, which has been set at 6300 crore rupees (approximately 692 million dollars) over the next three years, according to a report by the Financial Times. This substantial compensation package breaks down into various components, where a significant portion is attributed to company stock options that vest over time rather than immediate cash salary.

The breakdown of Pichai's package reveals that it is structured into three main components that equal approximately 2100 crore rupees annually. His base salary will be around 2 million dollars (about 16-17 crore rupees) per year, but the majority of his compensation comes from performance-related stock units valued at 126 million dollars. These stock units are divided into segments, illustrating the common practice among large technology firms to reward their CEOs with equity rather than solely cash compensation.

As tech companies face scrutiny over executive pay amidst broader economic challenges, Pichai's new salary package raises questions about the valuation of leadership in Silicon Valley and the financial incentives provided to top executives. This package also underscores the ongoing trend in corporate America where stock-based compensation plays a pivotal role, particularly for leaders of high-growth organizations such as Google.