Eric Schmidt, Google's Executive Chairman, Plans To Sell $1.5 Billion In Shares

SAN FRANCISCO -- Former Google CEO Eric Schmidt plans to sell up to 2.4 million shares of stock currently worth nearly $1.5 billion.

Schmidt, now Google's executive chairman, intends to stagger the sales of the stock over a one-year period. Google disclosed Schmidt's plans in a Friday regulatory filing. The company said Schmidt, 56, is trying to raise some money and diversify his investment portfolio.

If all 2.4 million shares of stock are sold, that will reduce Schmidt's stake in Google Inc. from 2.8 percent to 2.1 percent.

Schmidt's decision to sell some of his shares comes 10 months after he ended his 10-year stint as Google's CEO and turned the job over to one of the Internet search leader's co-founders, Larry Page.

Page and co-founder Sergey Brin filed plans to sell 5 million Google shares apiece in 2010. Those sales are scheduled to be completed in 2015.

Together, Page, Brin and Schmidt hold the majority of shareholder voting power at Google. They will retain that control even after they reduce their stakes. All three have been billionaires since Google went public in 2004.

Google shares fell $1.88 Friday to close at $604.64. The company disclosed Schmidt's plans to lower his holdings after the stock market closed. The shares fell 44 cents after hours.

Comments

[Capitolist]

11:11 PM on 02/19/2012

he sells 2.4 million shares, nets $1.5 billion bucks and that's just 0.7% of his stake?
the world really is messed up.

[Ralphiec88]

11:46 PM on 02/19/2012

No that's .7% of total shares.

[BLinCincinnati]

12:31 PM on 02/20/2012

It's 25% of his stake, it's 0.7% of the total outstanding shares of Google.

[MiMi LLawsonn]

10:48 PM on 02/19/2012

Google .....google.....better be careful of how you google.....as it might not turn out too well....
http://ireport.cnn.com/docs/DOC-736024.....this link actually PROVES just how it might affect a person's life.....no joke...it was a 42 second google search which was NOT PROVED in court that the accused did it....but it convicted him of 1st degree murder anyway....fair and just trial? Well, the videos taped live will SHOCK you....as it did a lot of viewers...and changed one man's life forever...

[jabailo]

08:35 PM on 02/19/2012

I don"t think any insider should be allowed to sell until a stock is at or above its historic peak (GOOG's being around $800).

[BLinCincinnati]

12:37 PM on 02/20/2012

That's just idiotic. For one thing, it could never be above it's "historic peak". It would also make it nearly impossible to sell any stock as no stock continually goes up. Insiders like Schmidt, or Bill Gates, or others with huge share totals, already have to sell in pre-scheduled sales to avoid any insider trading violations. They sell set amounts in regular intervals no matter if the price has dropped or gone up.

[IDIOTA]

04:53 PM on 02/19/2012

Wow

[ProgressivesWin]

04:45 PM on 02/19/2012

Schmidt strikes me as a predator who is intent on "ruling" the internet. We don't WANT your help, Schmidt.

[War peace]

01:11 PM on 02/19/2012

Pop ....I heard it

[War peace]

01:06 PM on 02/19/2012

The billionaires gotta pay for that Doomsday survival ticket some how. Not the 1st one this year to sell off huge chunk of stock.

[Barbarian At The Gate]

04:00 PM on 02/19/2012

LOL, reminds me of the movie 2012 where all the rich guys bought tickets on the modern Noah's Ark.

[MyTake]

11:33 AM on 02/19/2012

People should be so envious of this "House of Bilderberg" man.

He was one of 3 U.S. Corporations that pulled off the Irish Income Shifting tax avoidance scam in 2010 and ended up paying no more that 4.5% federal income tax in any country in which Google operated in.

The other two Corporations were EXXIB and GE.

In fact, GE's most recent 75,000 page electronic filing with the IRS saw them paying ZERO federal taxes in The United States.

And we should be so happy that the GE CEO sits on Obama's shoulder, as an adviser, whispering in his ear even more tax avoidance scams.

And since the U.S. Government is heading towards bankruptcy, no doubt the "creepy Eric" will be buying real estate in Dubai with his billion, being such a "globalist" character that he is!

[AfterSomeThought]

09:23 PM on 02/19/2012

Yes...Obama is well-known for helping the mega-rich avoid paying taxes. NOT.

You had us...then you lost us.

I can give you a huge list of conservative CEOs benefitting from tax loopholes as well, which the current administration has been trying to close. But just so you know how our government works, the Congress is where the tax laws that are currently on the books have been enacted.

Certainly, Obama was formerly in the Congress and and may have contributed to the problem - I don't know his entire voting record then. But since he achieved the bully pulpit of the presidency, he has done nothing but decry this type of tax avoidance and mega-wealthy manipulated tax brackets.

If you have a problem with Schmidt & co, you need to write your local GOP congressman, although be assured they will just charge you with "class warfare."

[award12]

10:21 AM on 02/19/2012

I think he knows something that the rest of us don't

[Kache]

05:17 PM on 02/19/2012

Like where to invest $1.5 billion. He certainly doesn't need that for personal reasons. Even though he received only $1 per year salary for the last 10 years, he got a $100 million payout when he resigned as CEO last year. This $1.5 billion is because Eric wants to put it to work elsewhere. His pet project the last two years has been geothermal.

[award12]

10:15 AM on 02/19/2012

will he be patriotic and pay taxes on that or hide $ overseas?

[tjdwill02]

11:05 AM on 02/19/2012

The sale of publicly traded stock is hardly monies that can be laundered and stashed !

[alunsulen]

09:33 AM on 02/19/2012

This goes to show that the more successful you are, the more the libs hate you ;)

[ProgressivesWin]

04:46 PM on 02/19/2012

Oh, you call scamming your way to wealth "success"?

[Kache]

05:19 PM on 02/19/2012

An Alta Vista fan? Remember Alta Vista?

[tin soldier]

08:49 AM on 02/19/2012

Seems to be a lot of concern regarding Eric Schmidts money.
Since he is so close with Obama, I'm sure a portion of his money will go to Obama's campaign. The Obama supporters would rather Obama get the money then create jobs. So keep an eye on the contribution.
Before the posters start slamming me regarding Obama and Schmidt.
Schmidt was Obama's campaign manager and was a member of the Obama transition team and Obama considered Schmidt for Commerce Secretary

[yebor]

10:49 AM on 02/19/2012

ummm . . . it's "than" create jobs, but even correctly spelled makes no sense at all. mr. schmidt was also never president obama's campaign manager, neither nationally nor for any region. he was an advisor as are many businessmen with any high-profile campaign. which is why we need to get the money out of elections. our ever more "expensive to run" elections have become cesspools of influence purchasing and corruption.

[tin soldier]

11:36 AM on 02/19/2012

Crackes me up!!! When the Dem/Libs have no where to go with a post they resort to spelling, grammar, and punctuation errors .anything to find fault.LMAO

[beatnik]

11:42 AM on 02/19/2012

Schmidt was most certainly not Obama's Campaign Manager, he was merely an informal adviser, but so what if he was? And so what if he gives money to the campaign? Are only Republicans allowed to get big-money donations?

I would rather Obama get money so that he can trounce the Republicans (again) and continue to clean up your mess AND AT THE SAME TIME piss you guys off. There is nothing more satisfying.

[Bude]

08:34 AM on 02/19/2012

He's gettin while the gettin's good.

Never a good sign.

[Kache]

05:24 PM on 02/19/2012

It's a good sign for wherever he invests the money. What? You think he's putting it in mason jars in the back yard?

[trron9]

07:59 AM on 02/19/2012

Are stocks taxed at 15%? Does this fall under capital gains tax? It so after taxes he'll keep $1.275 Billion of the $1.5 Billion! That's after he sells less than 20% of his stake in Google! That's hardly a fair tax! Obama 2012!

[trron9]

08:01 AM on 02/19/2012

To my previous comments what would you do with $1.275 Billion in cash?

[Barbarian At The Gate]

03:53 PM on 02/19/2012

While he was CEO of Google, everything he did was probably Google related.

Search engine: Google, not bing.
Phone: Samsung Nexus with Android OS not iPhone.
Stock owned: Google, not Amazon, Apple, or Microsoft.

Now that he is not Google's CEO he will diversify. The money will probably be invested in other stocks and securities that is not Google.

[Kache]

06:28 PM on 02/19/2012

Well, I think we know what you would try to do. But trust me, you really can't spend that much on hooters and beer.

The question is, what is Eric Schmidt going to do with it. He doesn't need it for personal use. Chances are he'll invest every dime and therefore owe no taxes at all on this stock. In fact, he's probably selling Google stock BECAUSE he has some other place to put the money to work. And I bet it's not buying an NFL franchise.

[award12]

10:15 AM on 02/19/2012

only the patriotic take their money overseas and hide it

[moby49]

07:51 AM on 02/19/2012

And with that, he is only selling less than 20% of his shares in Google putting his paper worth at over $8B.

Hope he does something useful with the money like funding startups and energy efficiency manufacturers. However, the chance of that = 0.1%. He will just move it into tax shelters and off shore like the rest of them.

[Napoleon3]

08:14 AM on 02/19/2012

The mentality of bitterness and lack of success has led Envy

[lloydc123]

08:55 AM on 02/19/2012

Success is one thing, greed is another. Where you put your success (money) is a good barometer of greed.

[alunsulen]

09:31 AM on 02/19/2012

The amount of liberal hatred directed towards you is a measure of your success!

[award12]

10:14 AM on 02/19/2012

and your level is.....?

[IfIonlyknew]

02:32 PM on 02/19/2012

Amount of praise by your conservative friends is based on the amount of lives that have been crushed....Something You can be proud of.