Schmidt was elected to become an Apple director during an Apple board meeting on Tuesday, bringing the Cupertino, Calif.-based company's director head-count to eight.
"In connection with his appointment, Dr. Schmidt has declined the automatic stock option grant to purchase 30,000 shares to which new directors are entitled under the Companys 1997 Director Stock Option Plan," Apple said in a filing with the Securities and Exchange Commission on Friday,
Instead, Schmidt intends to purchase 10,000 shares of Apple common stock on the open market, the company said.
Apple is one of many Silicon Valley corporations under investigation by the SEC due to irregularities discovered with stock option grants awarded to several current and former executives and board members.
The irregularities have spawned several investor lawsuits and sent some Apple execs scrambling to obtain council.