Google offered a $692 million pay package to the CEO

Alphabet has approved a new compensation package for Google CEO Sundar Pichai worth up to $692 million over three years, potentially placing him among the world’s highest-paid executives.

According to a regulatory filing first reported by the Financial Times, the package is largely performance-based, with much of it tied to stock incentives tied to Alphabet’s long-term technology bets, including self-driving unit Waymo and drone delivery company Wing.

This structure means Pichai will only receive the majority of his compensation if specific performance and market targets associated with the business are achieved.

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Patrick Moorhead, founder of Moor Insights & Strategy, said Alphabet’s nearly sevenfold market capitalization growth since 2015 strengthens the case for honoring the CEO.

“Pichai has overseen massive expansion in Google’s cloud business, AI investments and global product ecosystem. Shareholders have seen the tremendous value created during his tenure,” Moorhead said.

The new payment arrangement comes as Alphabet continues to invest heavily in new technologies such as artificial intelligence, autonomous vehicles and advanced logistics, areas seen as key to the company’s next phase of growth.