Google's chief accepted gear but no pay as Apple board member

Posted:
in General Discussion edited January 2014
Before he resigned from the company's board of directors this week, Google Chief Executive Eric Schmidt was essentially a volunteer during his tenure with Apple, accepting only products.



All the Google executive did accept, according to public records from the Securities and Exchange Commission revealed by BusinessWeek, was $8,712 in Apple products, and a $7,580 unknown "commemorative gift." The publication also recalled, as previously known, that Schmidt passed on stock options and a $50,000 retainer fee offered by the Cupertino, Calif.-based company.



Apple's directors are entitled to one of each of the company's new products, as well as a discount on hardware purchases. The directors do capitalize on the offering: former U.S. Vice President Al Gore took $13,161 in Apple products, while Arthur Levinson, former CEO of Genentech, took $8,923.



While Apple's board members are allowed 30,000 shares of the company stock, and the option to purchase an additional 10,000 shares each year, Schmidt passed. Instead, in September 2006, the Google executive bought 10,000 shares on his own, on the open market, at a cost of about $740,000. Today, BusinessWeek calculates, those shares would be worth $1.7 million.



Apple board members are also entitled to a $50,000 annual retainer fee, paid as $12,500 each quarter. But Schmidt also passed on that offering.



He practices the same actions with his own company as well. Schmidt's salary with Google is only $1 a year, and he hasn't accepted stock options from the company for several years.



Schmidt had served on the Apple Board of Directors since August of 2006. With Android for mobile phones out and Chrome OS for computers on the way, it was decided that Google and Apple were competing in too many similar markets. With his effectiveness diminished, he resigned from the board.



Schmidt already had to recuse himself from board meetings that involved iPhone plans, many of which would clash with Google's own attempts to promote its Android mobile operating system. Though the Google executive was adamant that the two companies don't occupy the same markets, the Federal Trade Commission has been investigating the Apple-Google link for a possible violation of antitrust laws through unfair collaboration.



Even though Schmidt resigned, the FTC declared this week that it would still be looking into links between the Apple and Google boards. Levinson still serves both companies, and if federal scrutiny continues, he may be forced to resign from one of his positions.
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Comments

  • Reply 1 of 35
    quadra 610quadra 610 Posts: 6,757member
    But he got over $8000 in cool Apple stuff, plus Apple shares.



    Al gore, of course, took the most Apple gear. In excess of $13,000 worth (one fully loaded Mac Pro and a pack of Skittles, LOL.)



    EDIT:



    In before the article update.
  • Reply 2 of 35
    c4rlobc4rlob Posts: 277member
    If only more executives were this responsible and well behaved when it came to perks. He clearly values his reputation and stake in Google enough not to risk tainting his resume with unnecessary offerings from Apple. Good on him.
  • Reply 3 of 35
    meelashmeelash Posts: 1,045member
    Wait, so how is he making money? I don't understand what motivation he has to work for a *business* and not accept monetary compensation. I mean it's not like Google and Apple are philanthropic outfits or something.
  • Reply 4 of 35
    Quote:
    Originally Posted by meelash View Post


    Wait, so how is he making money? I don't understand what motivation he has to work for a *business* and not accept monetary compensation. I mean it's not like Google and Apple are philanthropic outfits or something.



    Simply thinking ahead.
  • Reply 5 of 35
    sipadansipadan Posts: 107member
    Talk about not being greedy, I wish him the best even though he left Apple. He earned my respect by not squeezing every possible cent he could while on board. If only the financial moguls could follow the example....wishful thinking
  • Reply 6 of 35
    cmf2cmf2 Posts: 1,427member
    Quote:
    Originally Posted by meelash View Post


    Wait, so how is he making money? I don't understand what motivation he has to work for a *business* and not accept monetary compensation. I mean it's not like Google and Apple are philanthropic outfits or something.



    Clearly he's already made his money, and the stocks that he's purchased seem to be doing well.
  • Reply 7 of 35
    abster2coreabster2core Posts: 2,501member
    Quote:
    Originally Posted by Quadra 610 View Post


    But he got over $8000 in cool Apple stuff, plus Apple shares.



    Al gore, of course, took the most Apple gear. In excess of $13,000 worth (one fully loaded Mac Pro and a pack of Skittles, LOL.)



    EDIT:



    In before the article update.



    Are you implying that he was given the shares for free or otherwise?
  • Reply 8 of 35
    meelashmeelash Posts: 1,045member
    Quote:
    Originally Posted by roehlstation View Post


    Simply thinking ahead.



    I don't know what that means.
  • Reply 9 of 35
    Quote:
    Originally Posted by meelash View Post


    Wait, so how is he making money? I don't understand what motivation he has to work for a *business* and not accept monetary compensation. I mean it's not like Google and Apple are philanthropic outfits or something.



    I think when you are worth 4.4 billion dollars, you probably get over the making money part, and do things purely out of self interest.



    http://en.wikipedia.org/wiki/Eric_E._Schmidt
  • Reply 10 of 35
    rot'napplerot'napple Posts: 1,839member
    Quote:
    Originally Posted by Sipadan View Post


    Talk about not being greedy, I wish him the best even though he left Apple. He earned my respect by not squeezing every possible cent he could while on board. If only the financial moguls could follow the example....wishful thinking



    Screw the financial monguls... We need...



    "Mr. Schmidt goes to Washington"... (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 he sure would be a breathe of fresh air then the lot of crooks we have in there now...



    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 (price tag: ... 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!
  • Reply 11 of 35
    leonardleonard Posts: 528member
    Quote:
    Originally Posted by meelash View Post


    Wait, so how is he making money? I don't understand what motivation he has to work for a *business* and not accept monetary compensation. I mean it's not like Google and Apple are philanthropic outfits or something.



    He makes millions just off the billions he already has.
  • Reply 12 of 35
    hypoluxahypoluxa Posts: 694member
    How does any CEO etc live off of $1 a year? Where exactly does their "normal" income to live off of come from? I don't see living off stock purchases to be that secure. Someone please enlighten me.
  • Reply 13 of 35
    sflocalsflocal Posts: 6,110member
    Quote:
    Originally Posted by hypoluxa View Post


    How does any CEO etc live off of $1 a year? Where exactly does their "normal" income to live off of come from? I don't see living off stock purchases to be that secure. Someone please enlighten me.



    He's already ridiculously rich from Google. Looks like money is not a key factor for motivating him unlike other CEO's. His $1/year salary is probably more than just symbolic for him compared to other $1/yr CEO's that most likely are doing it not just because it's the "right thing do to" but more because it will (doubt it) make them "look" like they care about wasteful spending.
  • Reply 14 of 35
    Quote:
    Originally Posted by meelash View Post


    I don't know what that means.



    expect that from you either;-)
  • Reply 15 of 35
    emulatoremulator Posts: 251member
    Quote:
    Originally Posted by Quadra 610 View Post


    Al gore, of course, took the most Apple gear. In excess of $13,000 worth (one fully loaded Mac Pro and a pack of Skittles, LOL.)



    probably his fat fingers could not handle any portables. fat gore is just that.
  • Reply 16 of 35
    MacProMacPro Posts: 19,787member
    Quote:
    Originally Posted by meelash View Post


    Wait, so how is he making money? I don't understand what motivation he has to work for a *business* and not accept monetary compensation. I mean it's not like Google and Apple are philanthropic outfits or something.



    Free R&D info I guess lol
  • Reply 17 of 35
    jetlawjetlaw Posts: 156member
    Quote:
    Originally Posted by hypoluxa View Post


    How does any CEO etc live off of $1 a year? Where exactly does their "normal" income to live off of come from? I don't see living off stock purchases to be that secure. Someone please enlighten me.





    It's called getting paid in restricted stock. Just because Stevo only took a $1 salary doesn't mean that he only received $1 in total compensation. As a publicly traded company this information is easily ascertainable. Just take a look on any trading or finance site. Steve's total compensation including stock is approximately 14.6 Million/year despite his $1 basic compensation package.
  • Reply 18 of 35
    Quote:
    Originally Posted by meelash View Post


    I don't know what that means.



    He may simply have been positioning himself.
  • Reply 19 of 35
    ajitmdajitmd Posts: 365member
    There was nothing charitable about the CEO if Google being on Apple board. It benefited him to sit on the board of one of the most innovative companies and have a strategic view of Apple and the industry. It allowed Google plan ahead. Anyway, while Apple has been planing the evolution of the iPod, iPhone, etc Google has been developing Android, plus a web based OS. This conflict of interest did not start all of a sudden. This kind of conflict of interest should have been allowed to happen. The CEO of Google should have left a long time ago.



    I think the Android is a lame product because the iPhone has the economies of scale, a value chain, and a proprietary system. The lack of integrated hardware and software is an hindrance.
  • Reply 20 of 35
    Quote:
    Originally Posted by sflocal View Post


    He's already ridiculously rich from Google. Looks like money is not a key factor for motivating him unlike other CEO's. His $1/year salary is probably more than just symbolic for him compared to other $1/yr CEO's that most likely are doing it not just because it's the "right thing do to" but more because it will (doubt it) make them "look" like they care about wasteful spending.



    you'd be surprised how many executives work yet don't need the money. Sure, they take it since they're not gonna work for free, but not every executive is a greedy sleezebag. There is such a thing as enjoying your work and enjoying the challenge of running a company.
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