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Google's former CEO gets $1.25M pay raise

April 21, 2011 12:00:00 AM PDT
Former Google Inc.'s CEO Eric Schmidt got a sizeable raise after he gave up the top job to take on a new role at the Internet's most powerful company.

Google, based in Mountain View, boosted Schmidt's voluntary annual salary from $1 during most of his 10-year reign as the company's CEO. Schmidt is getting a $1.25 million raise in his new job as executive chairman.

Schmidt was replaced as CEO by Google co-founder Larry Page on April 4. The revised compensation package, filed with federal regulators Tuesday, will pay Schmidt an annual bonus of up to $6 million.

The raise and bonus plan supplement a stock package valued at $100 million that the board awarded Schmidt shortly after the late January announcement about Google's planned change in command. The stock will vest during the next four years, a sign that Google wants Schmidt to stick around.

Schmidt, 55, ranks among the world's wealthiest people with an estimated net worth of $7 billion that he accumulated mostly from the stock he bought and received after becoming Google's CEO in 2001.

When Schmidt joined Google, the company had less than $90 million in annual revenue. In Schmidt's last year as CEO, Google's annual revenue surpassed $29 billion.

Page and Google co-founder Sergey Brin, who each have fortunes of $20 billion, also have insisted on maintaining their salaries at $1 and have refused other compensation besides a $1,000 holiday bonus that Google has handed out to all employees most years.

The Associated Press contributed to this story