Sometimes people are being paid to be demoted. Eric Schmidt became the CEO of Google after Larry Page; he became the executive chairperson of the company earlier this month. Moreover, this change positively reflected in his pocket. Being the CEO, he was getting a salary of $1 yearly which is an extremely popular figure when it comes to CEOs; however, now SEC Filling from Google stated that he will be getting $1.25 million yearly with the probability of a target bonus of 400% his base salary.
Eric has already been receiving an extremely generous compensation as he has stepped down as Google’s CEO: $100 million in stock and different stock options. In addition, he also announced that in January he is anticipated to sell 534,000 Google shares in the coming year that would be at the Google’s current stock price, which would net him around $280 million.
The increased salary and generous compensation by Google does not reflect much on the day-to-day spending habits of Schmidt, however. Frobes has stated that all this is just a pocket change for Schmidt; his net worth is around $6.3 billion.
Google is to make two significant announcements this afternoon – firstly, it’s the Q4 earnings, the second and the most considerable one if that Eric Schmidt is to be replaced by Larry Page as the new CEO, who is going to take charge of the IT giant from April 4 2011.
Page is not someone who is new to Google, the fact is that he was Google’s CEO back in year 1998 for three consecutive years and now he will be handling the operations, on the other hand, Schmidt will be serving as the Executive Chairman. His role would be more of external operations such as deals, mergers, partnerships, interaction, leadership, knowledge, and technological exchange with the Governments. Moreover, Schmidt verified that the will be working as an internal advisor to Larry Page along with other co-founder named as Sergey Brin and he is currently managing the strategic projects.
The primary focus of the entire top management actually led to t his restructuring of the management, it will be extremely helpful in simplifying the entire management structure, which will be improving the efficiency, and effectiveness of the decision making process that was due since long. This well thought out restructuring is anticipated to enhance the accountability and clarity of the top management and Schmidt believes that working with Page and Sergey in this new role will be offering Google with long-term benefits.
Page is likewise excited about the future scenarios that would be resulting from this restructuring practice. He states that Schmidt’s role in the in last decade enabled the company to attain outstanding growth and this has been proved by the spectacular results. Google’s entire top management is simply unique in the whole world that is combining all the genius of the founders and the brilliant business success that does not looses focus on any of the areas. He believes that Google is a company that has incredible potential to grow and he has all such reasons which make him extremely excited about his new role in the company.