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Google pays $100mn compensation to Schmidt

Google pays $100mn compensation to Schmidt
PTI
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First Published: Sun, Jan 23 2011. 03 19 PM IST
Updated: Sun, Jan 23 2011. 03 19 PM IST
New York: Google Inc, fresh off announcing a management shake-up, will give $ 100 million equity award to outgoing chief executive Eric Schmidt, who in April will be succeeded by company co-founder Larry Page, says a media report.
“Google ... will give a $100 million equity award to outgoing chief executive Eric Schmidt,” the Wall Street Journal reported.
It was the first such award for Schmidt since he joined the company in 2001. It includes stock and options, the report said citing a Google spokesperson as saying.
Other top Google executives have periodically received smaller equity awards, the report added.
Last week, the company said Schmidt, 55, would become executive chairman to work on external matters such as partnerships and government relationships. Schmidt and Page said the moves are intended to speed up decision-making at the top of the Internet giant, which also posted strong fourth- quarter results.
The management reshuffle has been brought about to “streamline decision making and create clearer lines of responsibility and accountability” at the top of the company, Schmidt said.
Schmidt oversaw a period of tremendous growth as chief executive for the past decade, as Google turned into a Web search-engine powerhouse with a complementary search-ad business. The company has since expanded to graphical and video ads, as well as developing operating systems for mobile devices and laptop computers, among other things.
Meanwhile, the report noted that Schmidt had filed paperwork to sell company shares currently valued at $335 million this year, his first such sale in more than three years.
He currently owns 9.2 million Google shares, which are valued some $5.8 billion and represent 9.6% of the company’s voting power. When the sale is completed this year, the voting power would fall to 9.1%, the report noted.
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First Published: Sun, Jan 23 2011. 03 19 PM IST