Eric Schmidt may have been pushed aside as Google's CEO, but he's getting a nice gift as he packs up his top office.
Google did not respond to requests for comment, but a spokeswoman told the Journal that this was the first award of this kind for Schmidt , who will be replaced in April by company co-founder Larry Page.
The Journal also reported that late last week, Schmidt filed documents to sell company shares valued at $335 million. That will pare his current 9.6 per cent of Google's voting power down to 9.1 per cent.
"I was so happy to see this news today," said Dan Olds, an analyst with The Gabriel Consulting Group, laughing. "I'm glad that Schmidt will be taken care of financially as he transitions into his new, lesser role. I was concerned that the lower salary and, assumedly, benefit package might put him in a financial bind... This is one hell of a gold watch."
Olds added that it's not out of the ordinary for CEOs who are leaving their posts to get some kind of "going-away" package but he was surprised by the size of this one.
News hit last Thursday, during Google's fourth-quarter earnings report, that Page will succeed Schmidt as the company's next chief executive. Schmidt will remain with the company as executive chairman, focusing on relations with customers, partners and government.
Schmidt, who had been chairman and CEO of Novell and chief technology officer at Sun Microsystems, had been brought in to run Google while its founders - Page and Sergey Brin - gained business experience. Now that the company is 12 years old, Page wanted to take his turn at the helm.
Whit Andrews, an analyst with Gartner, said he suspects that with Facebook looming as a tough challenger, the co-founders wanted power over the company back so they could take on the social networking rival.