Why is Google paying its CEO this much money?

Google's newly appointed chief executive is nestling himself inside a fortress of entitlement. The company just awarded Sundar Pichai another $200 million in restricted stock on top of the $100 million he received last year. He didn't help create the company and Google's main business is a well-oiled near-monopoly. The outlandish compensation is fresh evidence of the imperialist tendencies that take over when founders are insulated by their share structures. It's almost impossible to justify the sums – which are based on no obvious performance targets – given to Pichai with the blessing of Alphabet 's inventors, Larry Page and Sergey Brin. By many accounts, Pichai is a capable leader to have safely entrusted with the golden search egg. Despite the company's far-reaching ambitions, Google for now accounts for nearly all of Alphabet's sales and its $16 billion in profit last year. More from Breakingviews : GE Capital shows systemic tagging is working There's no reason to suspect any other internet firm is on the verge of wresting this market away. Google controls at least two-thirds of the market in most developed countries. There are no major restructuring or strategic changes to undertake. Microsoft boss Satya Nadella, who has the difficult task of trying to remake the software company, was paid $18 million last year and $84 million in 2014, when he was given the top job. Dominance typically brings big rewards. It's easy to extract so-called rent from customers. Silicon Valley especially embraces the myth that its best and brightest deserve super-human wealth. A reliance on super-voting stock that keeps outside investors at bay helps clear the way to realize that dream. Page and Brin essentially answer to no one. They have complete control over the company thanks to Alphabet's three classes of stock, and their ownership of super-voting shares. Both only receive $1 a year, but they're among the richest people on the planet thanks to their stakes in Alphabet. The dilution from awarding gigantic stock packages is meaningless to them. And there's practically nothing other investors can do about it. For more independent commentary and analysisfrom Reuters Breakingviews, visit breakingviews.com

Sundar Pichai, CEO, Google

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Google's newly appointed chief executive is nestling himself inside a fortress of entitlement. The company just awarded Sundar Pichai another $200 million in restricted stock on top of the $100 million he received last year. He didn't help create the company and Google's main business is a well-oiled near-monopoly. The outlandish compensation is fresh evidence of the imperialist tendencies that take over when founders are insulated by their share structures.