Eric Schmidt’s role as chief executive officer of Google, Inc. for the last decade will be awarded $100 million worth of stock and options, the Internet company said on Monday.
Schmidt announced last week that he would become Google’s executive chairman after making way for cofounder Larry Page to become the new head of the leading Internet search company beginning in April.
The $100 million payout will be spread out over the next few years.
According to a regulatory filing, Schmidt also owns 9.2 million Google shares, a stake which is roughly equivalent to $5.8 billion, or 9.6 percent of the company’s voting rights. This instance is the first equity compensation for Schmidt since he became part of the company as board chairman in 2001.
Going forward, Schmidt will still have an influential role in the company in terms of continuing relationships in political circles and other external issues says Google.
Schmidt has been accredited with the growing success of Google. However, in an interview with Reuters, he admits that his decision to step down was not due to competitive forces from players such as social network platform Facebook, Inc., but rather an attempt to enhance internal decision-making processes.
Reaction in the market has been mixed.
"We do not view Schmidt's new role as executive chairman and Page's new role as chief executive as negative developments. In our view, Schmidt very effectively spearheaded Google to become one of the largest and most innovative technology companies of our times and we expect Page to be an equally effective CEO of Google," wrote Sandeep Aggarwal, Internet analyst at Caris & Company.
"He's enigmatic," said Jeff Jarvis, author of "What Would Google Do?" "The media doesn't always understand Eric Schmidt's sense of humor, (but) at least he wears a tie. Larry's a different kind of beast. … It will take some getting used to."
Recent reports have also indicated that Schmidt will be considering a career on CNN television.
Although the accomplishments of Larry Page have often been low-key, despite being a billionaire cofounder of one of the world’s most notable companies. In 2010, he was ranked the world’s 24th richest person, with an estimated net worth of $ 17.5 billion.