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Eric Schmidt Plans $334 Million Stock Sale

Transactions involving 534,000 shares proposed to SEC

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It may be quite a while before it’s possible say for sure whether Eric Schmidt chose a new position or was asked to step down, but in the meantime, no one needs to feel sorry for him.  The soon-to-be ex-CEO of Google has submitted paperwork to clear the way for a stock sale worth about $334 million.

A statement Google sent to the SEC indicated, "Eric intends to sell approximately 534,000 shares of Class A common stock."  Multiply that number by $625.50 (the current price of Google’s shares, although that’s sure to fluctuate), and the result’s $334.02 million.

That’s a pretty large sum of money, and more than enough for a person to retire on.  Investors shouldn’t worry that Schmidt’s giving up on Google, though, as the trades are supposed to take place over the course of one year, not one week or one day.

Also, the SEC filing noted, "If Eric completes all the planned sales under this trading plan, he would continue to own approximately 8.7 million shares, which would represent approximately 2.7% of Google’s outstanding capital stock and approximately 9.1% of the voting power of Google’s outstanding capital stock (assuming no other sales and conversions of Google capital stock occur)."

The 534,000 shares aren’t much more than a drop in the bucket, then.

Hat tip goes to Joseph Tartakoff.

Eric Schmidt Plans $334 Million Stock Sale
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  • http://bordstudios.com Joel

    I wonder if Eric jumping ship means something crazy is going to happen?

    I don’t know the whole story but if a CEO leaves the company and tries to sell all their shares it could be something shady is on the horizon…

    I don’t know, call me paranoid, just a weird feeling I got since China might now become the world reserve currency which would make the dollar next to useless.

    http://www.infowars.com/china-says-the-end-of-the-dollar-is-near/

  • Adsense Publisher

    While it doesn’t look good when a CEO is stepping down and selling off stock around the same time, he still holds 8.7 million shares after the sale of his stock is completed. So I don’t see this as anything, but maybe he needs to free up some cash for other investments. If you knew his entire stock and other investment portfolios you might see something that by not knowing we come up with all these theories and what if’s. If he told the world he needed to make sure he had X% of his wealth at all times to be liquid wouldn’t that sound like he’s making a financial decision based on his exposed risk than Google might be in for some rocky times? Of course he’s not going to say why he did what he did, and we shouldn’t think it has anything to do with Google as I would think it might have to do with his own personal finances.

  • http://www.mcssafety.com Mike Streadwick

    No doubt a lot of investors will be dumping their Google stock in a panic at this news. Almost makes me want to pause my AdWords account and put the money into Microsoft Ad Center instead.

  • david

    cashing in on $330m of $5.4b worth of stock is hardly a sign that he’s bailing ship. the timing is right with his transition and let’s face it, he’s not getting any younger…what good is being a billionaire when you can’t enjoy every minute of it? :)

  • http://ericschmidtgoogle.blogspot.com Eric

    It’s complicated. Let me just say that:

    http://ericschmidtgoogle.blogspot.com/2011/01/8-reasons-why-i-am-liquidating-some.html

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