Google Inc Executive Chairman Eric Schmidt is selling roughly 42 percent of his stake in the Internet search company over the coming year, Google announced on Friday.
Schmidt will sell 3.2 million shares of Class A common stock through a stock trading plan, Google said in a filing with the U.S. Securities and Exchange Commission.
In the mood for some cash!
The plan, which Google said would give Schmidt “individual asset diversification and liquidity,” allows Schmidt to spread trades out over a period of one year to reduce the market impact.
In stark contrast, when Schmidt served on the board of Apple, he did not receive any salary or stock as compensation for his term there. Schmidt's estimated net worth is thought to be $7.5 billion. Of course, despite selling nearly half of his shares, should the former CEO decide to cash out completely, he has enough stock to make him a multi-billionaire.
Schmidt, who served as Google's CEO until 2011, currently owns roughly 7.6 million shares of Class A and Class B common stock. The shares represent 2.3 percent of Google's outstanding stock and roughly 8.2 percent of the voting power of Google's stock.
Schmidt dumping shares shouldn't come as a surprise. Nearly a year ago, he sold $1.5 billion worth of shares. When Schmidt was CEO of Google, he was paid only $1 per year and his compensation came in the form of stock. But once he stepped down from CEO and accepted his position as executive chairman, the company gave him a pay hike and upped his annual income to $1.25 million.
Shares of Google, which finished Friday's session at a new closing high of $785.37, were down $2.21 in after hours trading.
Eric Schmidt, Eric Schmidt Google, General, Google EC Eric Schmidt, Google Executive Chairman Eric Schmidt, Google former CEO, Schmidt cashing out, Schmidt Google, Schmidt sale of shares, Schmidt shares, Schmidt stake