Google CEO Eric Schmidt Accepted No Salary or Stock for Apple Board Service

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BusinessWeek reports that Google CEO Eric Schmidt received no salary or stock compensation for his service on Apple's Board of Directors, accepting only Apple gear and a "commemorative gift" in exchange for his services. Schmidt recently resigned from Apple's Board due to limitations on his effectiveness as the two companies have become competitors in an increasing number of areas.
Schmidt's decision not to be paid for his Apple service differs from the compensation plan Apple put in place for directors in 1997, around the time Steve Jobs returned as CEO. Under the plan, Apple grants outside directors the option to acquire 30,000 Apple shares. The options vest over three years. For every year after that, directors are granted options to purchase an additional 10,000 shares, which vest immediately.

Additionally, Apple pays directors an annual fee of $50,000, in quarterly increments of $12,500. Apple filings show that Schmidt, from the beginning of his service as a director in 2006, declined both the retainer fee and the stock options.
Schmidt did reportedly receive Apple gear valued at $8,712 in fiscal 2008 as part of Apple's program offering to Board members one of each new product introduced and discounts on additional merchandise. Each director, including Schmidt, also received a "commemorative gift" in fiscal 2008 valued at $7,580, as well as a cash payment to offset the tax liability of the gift.

Like Jobs at Apple, Schmidt accepts only a $1 per year salary for his CEO position at Google, and has also declined stock options for the past several years.

Article Link: Google CEO Eric Schmidt Accepted No Salary or Stock for Apple Board Service
 

iOrlando

macrumors 68000
Jul 20, 2008
1,811
1
Each director, including Schmidt, also received a "commemorative gift" in fiscal 2008 valued at $7,580,

aka

a fancy sit down dinner with Steve is the gift.
 

Bonte

macrumors 6502a
Jul 1, 2002
974
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Bruges, Belgium
Apple had the same problem with Microsoft in the '80, they worked very closely on the Mac project but in the end MS copied most ideas for there own OS. In the years that Schmidt was on the board Google competed more and more with Apple, i don't think that is pure coincidence. Killing the Google app is also strange to say the least and the latest Safari version now supports other search engines.

We'll also see Apple moving more into the service business making them compete even more, the love between Apple and Google is clearly over.
 

Chaszmyr

macrumors 601
Aug 9, 2002
4,267
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He didn't need to get paid, he just had to sit on the meetings to help come up with ideas for Google's next product. :rolleyes:

Don't get me wrong, I appreciate the results when Apple and Google collaborate, but I doubt Steve Jobs was thrilled when Android, Chrome, and Chrome OS were announced.
 

pinshot

macrumors newbie
Jul 26, 2008
8
0
No pay?

Forgive me for being blonde but with no pay from either company and no stock...how does this guy earn money and also why would you work for no pay?
 

kamiboy

macrumors 6502
May 18, 2007
322
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Sounds like a good gig, being on the Apple board, how does one become one anyway?

Say I win the lottery, what would it take? Buying lots of stocks? Or is there an approval process. Seriously, I am prone to wondering, let it slip if you have knowledge of the golden path.
 

pdjudd

macrumors 601
Jun 19, 2007
4,037
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Plymouth, MN
Forgive me for being blonde but with no pay from either company and no stock...how does this guy earn money and also why would you work for no pay?
CEO's regularly receive other types of compensation other than a regular salary, most of their expenses tend to be business related and thus are compensated. Not to mention these guys have multiple investments in other areas that is pure profit.
 

pdjudd

macrumors 601
Jun 19, 2007
4,037
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Plymouth, MN
Say I win the lottery, what would it take? Buying lots of stocks? Or is there an approval process. Seriously, I am prone to wondering, let it slip if you have knowledge of the golden path.
Having lts of stock helps, but board positions are also based on invitations - you are hired like any other job. Of course you tend to know other board members to get there.
 

Lesser Evets

macrumors 68040
Jan 7, 2006
3,500
1,264
Only $8,712??

I would have gotten $50,000+ and rigged up home and friends, etc. Ah well. Admirable, but charity in business is over rated. I think the stocks are proper compensation and denial of pay undercuts value of service.
 

Cleve

macrumors regular
Jun 7, 2007
195
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He was there to gain information

Why should he get paid to get info from Apple, he should have paid Apple! :p
 

polaris20

macrumors 68020
Jul 13, 2008
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I wonder if he ditched OS X on his Macs and is running a top secret beta of Chrome OS :D
 

pdjudd

macrumors 601
Jun 19, 2007
4,037
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Plymouth, MN
Only $8,712??

I would have gotten $50,000+ and rigged up home and friends, etc. Ah well. Admirable, but charity in business is over rated. I think the stocks are proper compensation and denial of pay undercuts value of service.
Trust me, if you were on the board of directors of a company like Apple, you could afford to do that already out of pocket. The discount that these guys get are considered minor bonuses like the boss taking your department out to lunch.
 

Doctor Q

Administrator
Staff member
Sep 19, 2002
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The article also says that his Google salary is $1 a year and he didn't accept Google stock options for the past several years. Now that he's lost his nonpaying job for Apple, I hope he invests his $1 from Google wisely.
 

derryquinn

macrumors 6502
Sep 29, 2007
380
3
Schmidt did reportedly receive Apple gear valued at $8,712 in fiscal 2008 as part of Apple's program offering to Board members one of each new product introduced and discounts on additional merchandise.

*formulates plan to become board member*
 

Rot'nApple

macrumors 65816
Dec 27, 2006
1,151
0
I DID build that!
Well, at least he didn't steal ideas AND take salary and stock!

;)

Sounds like a ethical and morale person... Someone who we need in Congress... and we'll call it...

"Mr. Schmidt goes to Washington"... :D (get it, "Mr. Smith goes to Washington" ... the movie starring James Stewart about a naive man who is appointed to fill a vacancy in the US Senate. His plans promptly collide with political corruption, but he doesn't back down... No? Never mind.)

But Schmidt sure would be a breathe of fresh air then the lot of crooks we have in there now... :mad:

Anyone care to join in a letter writing campaign to that ethical and transparent Speaker of the House, Nancy Pelosi, and tell her what we think about where "apparently Congress is not philosophically averse to private air ... The Air Force had asked for one Gulfstream 550 jet (... But the House Appropriations Committee, at its own initiative, added to the 2010 Defense appropriations bill another $132 million for two more airplanes and..."

http://www.rollcall.com/media/37552-1.html

Yes Mr. Schmidt, nowadays, we need more of you in Washington!
 

derryquinn

macrumors 6502
Sep 29, 2007
380
3
The article also says that his Google salary is $1 a year and he didn't accept Google stock options for the past several years. Now that he's lost his nonpaying job for Apple, I hope he invests his $1 from Google wisely.
Maybe he could use it to buy some more Google stock :D
 

whooleytoo

macrumors 604
Aug 2, 2002
6,574
657
Cork, Ireland.
Forgive me for being blonde but with no pay from either company and no stock...how does this guy earn money and also why would you work for no pay?
He's probably already quite wealthy, so has little need of the cash or stock. He probably just is looking for a challenge, working on something new.

Even if I won a multi-million lotto and never needed to work again, I still would. Work provides a lot more than just cash.
 

kamiboy

macrumors 6502
May 18, 2007
322
0
Even if I won a multi-million lotto and never needed to work again, I still would. Work provides a lot more than just cash.
I wouldn't, no job is so exciting that I'd like to throw away a sizeable portion of my life for it unless I had no choice. Then again I've always been above average at entertining myself, a lot of people would wither away without something to do.
 
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