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Schmidt Paid in Apple Gear While on Board

By - Source: Tom's Hardware US | B 24 comments

How much does an Apple board member get paid, anyways?

One of the bigger events last week was Google CEO Eric Schmidt resigning from the Apple board of directors. Back in May, Schmidt said he had no intention of stepping down from the board, despite the fact that the Federal Trade Commission was reportedly looking into the ties between the Google and Apple Boards, citing conflicts of interest regarding competing products. However, Schmidt stepped down late last week and we're only now learning the details of Mr. Schmidt's position.

Business Week today reports that a review of Apple's proxy filings with the SEC between 2007 and 2009 shows that, during the three years the Schmidt served as an Apple director, he accepted almost no pay or benefits. What he did accept was $8,712 worth of Apple equipment.

This information alone is nothing if we don't know what kind of money Schmidt was turning down, so let's paint some trees and hills into this picture. According to BW, Apple offers directors $50,000 a year at a rate of $12,500 per quarter. Aside from that chunk of change, they're also given the option to acquire 30,000 Apple shares, which vest over three years. Each year, directors are granted options to purchase 10,000 more shares in Apple, which vest immediately. On top of that, Business Week reports that as of fiscal 2008, directors on the Apple board are each offered a freebie whenever the company launches a new product, along with the chance to buy more of the same product at a discount.

So what did Eric do? Schmidt is said to have declined the retainer fee and the stock options, opting instead to buy Apple shares on the open market. In fiscal '08, Schmidt received $8,712 worth of Apple gear. The only directors to receive more were Al Gore and Arthur Levinson who got $13,161 and $8,923 worth of equipment respectively.

Why was Schmidt so happy to work for free (well, almost)? And how come he was so reluctant to leave the board in the first place? The questions, the questions...

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  • 2 Hide
    lazybon3 , August 7, 2009 3:51 PM
    wow! who cares? c'mon, its ~9000 Dollars, and the guy is not poor, it is like your company gives you a free fast ethernet card....
  • 1 Hide
    scook9 , August 7, 2009 3:56 PM
    that's 1 mac pro......with the right options (hope he at least got a 30" screen out of them haha)
  • -1 Hide
    back_by_demand , August 7, 2009 3:57 PM
    He declined the pay because it was chump-change (relatively) and took the goods because he probably has a lot of Neices and Nephews that like birthday presents. The true value was probably how much information about Apple was worth to Google. Don't be too surprised if Google have a slew of products or services that have a very "Apple-esque" smell about them either now or coming soon.
  • Display all 24 comments.
  • 1 Hide
    Anonymous , August 7, 2009 4:00 PM
    He worked for free for the same reason Larry & Sergey each get an annual salary of $1: they all have so much money that getting more means nothing to them.
  • 5 Hide
    hellwig , August 7, 2009 4:03 PM
    Obviously he was waiting for the iPhone 3GS to comeout. I bet he got an unlocked version instead of a crappy AT&T one.

    Seriously though, the only reason he stayed on was probably because he's an arrogant jerk who wasn't going to let anyone tell him what to do.
  • 0 Hide
    830hobbes , August 7, 2009 6:15 PM
    $8,712 of Apple merchandise? That's what? One computer, some crappy ear buds and a service plan?
  • 2 Hide
    senses , August 7, 2009 7:49 PM
    I bet you it's a I'm a Mac T-shirt
  • -1 Hide
    senses , August 7, 2009 7:49 PM
    I bet you it's a I'm a Mac T-shirt
  • 1 Hide
    nachowarrior , August 7, 2009 7:52 PM
    50g's a year, that's it? wtf. cheap asses.
  • -1 Hide
    Anonymous , August 7, 2009 7:56 PM
    50k for a board director, yearly? what am i missing????
  • 1 Hide
    Platypus , August 7, 2009 9:55 PM
    KrinetiK50k for a board director, yearly? what am i missing????

    The option to acquire 30,000 shares of Apple stock.

    That amount would be worth $4.95 million.
  • 4 Hide
    nitto555rchallenger , August 7, 2009 10:34 PM
    Just like all apple products, he wasn't willing to leave his sleek and sexy secretary.
  • 0 Hide
    Pei-chen , August 8, 2009 12:17 AM
    Wait, wait, wait, what's Al Gore's (political) contribution to Apple by seating on its board? Keep DOJ of Apple's back?
  • 0 Hide
    ThisIsMe , August 8, 2009 2:19 AM
    Al Gore is only there so that he can claim he does have something to do with technology. That way his "Father of the Internet" title isn't a 100% joke. What a douche bag!!! He's probably the one who made Apple come up with that "Greenest Laptop" logo thing that they did a while back.

    But let be "so serial" (hahaha) for a minute. Global warming going to get us, and Apples new Hybrid Mac is going to save us all from certain doom!
  • 1 Hide
    anamaniac , August 8, 2009 7:11 AM
    Al Gore...

    I dislike Macintosh even moreso now...
  • -2 Hide
    back_by_demand , August 8, 2009 5:34 PM
    thisismeGlobal warming going to get us, and Apples new Hybrid Mac is going to save us all from certain doom!


    Actually, what will save us from Global Warming is getting people to stop driving round in stupidly large cars, stop flying round the world in jet planes, stop burning down rainforest and find a way to make nuclear fusion work. That way we can switch off all the coal and oil fired power station, switch off all the other nuclear fission reactors, run all vehicals on electric that doesn't come from fossil fuel sources, whilst at the same time freeing up the need to use oil completely, therefore being able to tell the middle east where it can STICK its oil and hopefully ending all wars at the same time.

    Buying a Mac is going to end global warming? HAVE YOU BEEN SMOKING CRACK?
  • 0 Hide
    ThisIsMe , August 9, 2009 1:15 AM
    It was a sarcastic comment. I don't really believe that buying a Mac will end global warming. I was poking fun at the people who do believe this and the fact that Apple thinks they can market their stuff this way.

    I thought the joke was pretty plain to see. I referenced his laughable "Father of the Interent" title. I even referenced the South Park episode about Al Gore hunting "Man-bear-pig" where Al Gore kept saying "I'm serial" with a lisp instead of "I'm serious". In the show "Man-bear-pig" was a sarcastic reference to global warming and Al Gores need to get attention and feel import. I'm only explaining this much because you obiously haven't seen it.

    I tried. Does this help with your understanding? Normally I would assume it would be pretty clear by now, but you have stated that "Global Warming" is real and that you have a plan (or at least an idea) of your own to save us.

    Let us know when your "World Tour" and your own "An Inconvenient Truth" clone kicks off. We'll be sure to by tickets to the show and rent a copy of the movie!

    /sarcasm duh!
  • -1 Hide
    the_one111 , August 9, 2009 1:45 AM
    back_by_demandActually, what will save us from Global Warming is getting people to stop driving round in stupidly large cars, stop flying round the world in jet planes, stop burning down rainforest and find a way to make nuclear fusion work. That way we can switch off all the coal and oil fired power station, switch off all the other nuclear fission reactors, run all vehicals on electric that doesn't come from fossil fuel sources, whilst at the same time freeing up the need to use oil completely, therefore being able to tell the middle east where it can STICK its oil and hopefully ending all wars at the same time.Buying a Mac is going to end global warming? HAVE YOU BEEN SMOKING CRACK?

    You assume most people believe that something invented by the most idiotic man in America (more so than Bush or Obama even) is actually scientifically true.

    I feel sad for people like you who blindly follow the quote and quote "intellectual people". Ha! What a joke.
  • -1 Hide
    nitto555rchallenger , August 9, 2009 5:09 AM
    back_by_demandActually, what will save us from Global Warming is getting people to stop driving round in stupidly large cars, stop flying round the world in jet planes, stop burning down rainforest and find a way to make nuclear fusion work. That way we can switch off all the coal and oil fired power station, switch off all the other nuclear fission reactors, run all vehicals on electric that doesn't come from fossil fuel sources, whilst at the same time freeing up the need to use oil completely, therefore being able to tell the middle east where it can STICK its oil and hopefully ending all wars at the same time.Buying a Mac is going to end global warming? HAVE YOU BEEN SMOKING CRACK?


    HA HA Buy Mac or Smoke Crack !!!! that should be their new slogan....
  • -1 Hide
    back_by_demand , August 9, 2009 8:16 AM
    the_one111You assume most people believe that something invented by the most idiotic man in America (more so than Bush or Obama even) is actually scientifically true.I feel sad for people like you who blindly follow the quote and quote "intellectual people". Ha! What a joke.


    Last time someone got into a bitchfight about factual knowledge they looked pretty stupid, try to do a bit of reading about Fusion technology and try not look like a small child. Who is this "idiotic ma" you refer to, is it anyone in the several teams worldwide that have spent billions trying to crack the problem?
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