Google’s Eric Schmidt Earned More Than $100M In 2011
A regulatory filing has revealed that, when former Google Chief Executive Eric Schmidt assumed his new role as Executive Chairman, he received a sizable pay raise in the process.
According to Wall Street Journal reports published Friday, Schmidt left behind the “symbolic” $1 annual salary he received in his old position and earned $1.25 million in his new position, according to documents filed by the Menlo Park, California-based company.
Furthermore, a Saturday article by Ari Levy and Danielle Kucera of Bloomberg News states that Schmidt was paid a total of $101 million last year — a number which includes “stock awards and options that vest over a four-year period.”
The 56-year-old Schmidt, who surrendered control of the search engine giant to co-founder Larry Page in 2011, was paid $55.6 million in share awards, $38.1 million in options, and $7.2 in base salary and other compensation. In 2010, he was paid $313,219, Levy and Kucera said.
“It´s a big enough number that it would get your attention, and it´s appropriate for shareholders to ask why it´s that big,” said David Larcker, a corporate governance professor at Stanford´s Graduate School of Business, told Bloomberg. “You´d want to feel pretty comfortable that that corresponds with his new position, the new things he wants to do. But this is a multiyear grant — it´s not like you´re going to see this every year.”
A Google spokeswoman contacted by Levy and Kucera declined to comment on the matter.
Bloomberg also notes that Schmidt isn’t the only executive to have received an attention-grabbing compensation package recently. Apple also gave CEO Tim Cook a package which vests over time, and the head of the iPhone and iPad manufacturer “will receive pay for 2011 worth $378 million, one of the biggest packages on record. That includes $376.2 million in shares, half of which will vest in five years and the remaining amount in 10 years, Cupertino, California-based Apple said in January.”