Google's Schmidt gains option to sell 42% of his stock
No guarantee Schmidt will sell all those shares, but opening the door to $2.5B could be seen as Schmidt beginning to 'cash out a little'
IDG News Service - Google executive chairman Eric Schmidt may end up selling 42 percent of his shares in the company under a new stock trading plan designed to diversify his investment portfolio.
Schmidt owned approximately 7.6 million shares of class A and class B common stock as of Dec. 31, 2012, but in November he adopted a trading plan giving him the option to sell up to 3.2 million shares of class A common stock. That plan became active this month, the company announced Friday in a filing with the U.S. Securities and Exchange Commission.
The trading plan is designed to allow Schmidt to diversity his investment portfolio and spread stock trades out over a period of one year to reduce the market impact, the filing said.
The 7.6 million shares owned as of last December represented 2.3 percent of Google's outstanding capital stock and about 18 percent of the voting power, the company reported.
Based on Friday's closing price of $785.37, the sale of 3.2 million shares would bring a whopping $2.5 billion.
Though there is no guarantee Schmidt will sell all those shares, the plan could be seen as Schmidt beginning to "cash out a little," said Greg Sterling, senior analyst with Opus Research.
In fact, "I wouldn't be surprised if he departs within 12 to 24 months," the analyst said.
Schmidt basically acts as an ambassador for Google with foreign governments, so it would be a natural step for him to leave and pursue a more official role as a U.S. diplomat or ambassador, Sterling said. In a closely watched move last month, Schmidt went to North Korea and met some of the country's leaders, though he called the trip a personal one.
On the other hand, Schmidt, who served as Google's CEO from 2001 to 2011, could just coast with his remaining stock even if he sold the 3.2 million shares, Sterling added.
Google will put out a separate filing with the SEC if Schmidt does sell off shares.
- Best iPhone, iPad Business Apps for 2014
- 14 Tech Conventions You Should Attend in 2014
- 10 Desktop Apps to Power Your Windows PC
- How to Add New Job Skills Without Going Back to School
- Slideshow: 7 security mistakes people make with their mobile device
- iOS vs. Android: Which is more secure?
- 11 sure signs you've been hacked
- OpenStack Hype vs. Reality: CIO Quick Pulse Open-source architecture can enable IT departments to build infrastructure-as-a-service (IaaS) clouds running on standard hardware.
- The Critical Role of Support in Your Enterprise Mobility Management Strategy Most business leaders underestimate the importance of tech support when they choose an EMM solution. Here's what to put on your checklist.
- Separating Work and Personal at the Platform Level: How BlackBerry Balance Works BlackBerry® Balance™ separates work from personal on the same mobile device, right at a platform level. Find out how it can work for...
- Protection for Every Enterprise: How BlackBerry Security Works Get an IT-level review of BlackBerry® Security, addressing data leakage protection, certified encryption, containerization and much more.
- Live Webcast On-demand webinar: "Mobility Mayhem: Balancing BYOD with Enterprise Security" Check out this on-demand webinar to hear Sophos senior security expert John Shier deep dive into how BYOD impacts your enterprise security strategy...
- Live Webcast Unmasking the Differences between Consumer and Enterprise File Sync & Share The consumerization of IT combined with the rapid pace of the modern mobile workplace is forcing enterprise IT teams to evaluate file sync...
- Live Webcast Workforce Mobilization for Improved Productivity A mobility research director from Aberdeen discusses reasons for extending legacy applications to mobile devices, and an integration strategist from Attachmate shows how...
- Getting Ready for BlackBerry Enterprise Service 10.2 Find out how BlackBerry® Enterprise Service 10 helps organizations address the full spectrum of EMM challenges, while balancing the needs of both the...
- Containerization Options: How to Choose the Best DLP Solution for Your Organization This webcast outlines a framework for making the right choice when it comes to containerization approaches, along with the pros and cons of... All Mobile/Wireless White Papers | Webcasts
As emerging technologies evolve they often find an initial niche in highly specialized scenarios, or in specific industry verticals, before expanding to wider areas of applicability. Within these initial niches, the early adopters can be anything from digital enthusiasts to fashionistas, or they can be folks simply using the technology because it serves a specific need extremely well. (free registration required) more