$1-a-year Google duo see value of stakes drop
Google Inc. founders Sergey Brin and Larry Page each took home their customary $1 annual salary again in 2007, while a steep decline in the company’s stock price chopped more than $8.5 billion from each of their massive holdings of Google shares, according to a regulatory filing Tuesday.
Brin, 34, the company’s president of technology, and Page, 35, president of products, took the hits to their multibillion-dollar fortunes as shares of the Internet search leader plunged over the last five months on disappointing fourth-quarter earnings and fears the company couldn’t sustain its torrid growth.
Chief Executive Eric Schmidt also received his customary $1 salary in 2007, the Mountain View, Calif.-based company said in its proxy statement filed with the Securities and Exchange Commission.
Schmidt also received $480,561 in 2007, including $478,662 in expenses incurred by Google, mostly for Schmidt’s personal security. His total compensation was down 14% from 2006, when his personal security costs were higher.
Schmidt’s stockpile of 9.5 million shares of Google stock -- down from the 10.7 million shares he owned at the same time last year -- has also taken a hit because of the stock price drop. His stock is now worth about $4.3 billion, about $3 billion less than at Google’s peak of $747.24 in November.
As of Feb. 15, according to the regulatory filing, Brin owned 28.6 million shares of Google, while Page owned 29.1 million, about as much as they held last year. Their stock is Class B common stock, which in Google’s case means they carry greater voting power than ordinary shares.
At the stock’s November peak, Brin and Page each held more than $21 billion worth. Now that the stock is trading below $500 -- it lost $9.78, or 2%, to close at $450.78 on Tuesday -- Brin and Page each now hold around $13 billion worth.
Each founder received a bonus of $1,723, for a total of $1,724. Brin got the same amount last year. Page’s figure was higher in 2006 because Google paid $37,000 in personal travel expenses for him.
