NEW YORK – The three executives who run Google Inc. (GOOG) each drew a salary last year of $1. But Chief Executive Eric Schmidt and co-founders Larry Page and Sergey Brin more than made up for it in the large stakes they own in the online search leader, which has made them billionaires.
Besides his $1 salary, Schmidt, who was No. 116 on Forbes magazine's most recent ranking of American billionaires, received a bonus of $1,723 and "other compensation" valued at $555,742, according to a proxy statement filed with the Securities and Exchange Commission on Wednesday. The bulk of that other compensation, $532,755, was for personal security.
Google's shares closed 2006 at $460.48 on the Nasdaq Stock Market, up 11 percent for the year. The stock started at $85 when it went public in August 2004.
Schmidt, 51, owns 10,096 of Google's Class A shares and 10.7 million of its Class B shares. At the end of 2006, those securities were worth about $4.9 billion.
Brin, 33, and Page, 34, shared the No. 26 spot on the Forbes U.S. billionarie list, published in March. Each are worth $16.6 billion, according to the magazine's estimate. Brin beneficially owns 28.6 million of Google's B stock, which was worth about $13.2 billion at the end of 2006. and Page owns 29.2 million shares, worth about $13.4 billion at the end of the year.
In addition to their $1 salaries, Brin and Page each received a bonus of $1,723 — of this, $1,000 was a holiday bonus awarded to each Google employee. Page, whose title is president of products, topped Brin's $1,724 compensation package with compensation valued at $38,519. He received perks totaling $36,795, which consisted of $33,195 for transportation, logistics and security during personal travel and $3,600 for personal travel using rental cars.
Google does not maintain executive retirement programs such as executive pension plans, deferred compensation plans or other executive retirement benefits.
The Associated Press calculations of total pay include executives' salary, bonus, incentives, perks, above-market returns on deferred compensation and the estimated value of stock options and awards granted during the year. The calculations do not include changes to the present value of pension benefits and may vary from totals that companies report.