Google Inc. co-founders and its chief executive will continue to receive $1 each in annual salary and forego bonuses in 2006, while holding shares potentially worth billions of dollars in the Web search leader, according to regulatory filings on Friday.
CEO Eric Schmidt and co-founders Sergey Brin and Larry Page set the $1 annual salary for 2005 and decided to continue the policy in 2006, Google said in its shareholder proxy statement filed with the U.S. Securities and Exchange Commission.
Schmidt and Page earned bonuses of $1,630 in 2005, while Page earned $1,723.
“Their primary compensation continues to come from returns on their ownership stakes in Google,” the statement said. “As significant stockholders, their personal wealth is tied directly to sustained stock price appreciation and performance, which provides direct alignment with stockholder interests.”
The three also exert voting control over Google through their holdings of class B shares in the company.
Schmidt holds more than 12.4 million class B shares in Google. Brin, who is president of technology, holds 31.5 million class B shares and Page, who is president of products, holds 31.6 million class B shares. Google shares traded 0.4 percent lower at $390 on the Nasdaq on Friday.
Google said it nominated its 11 board members for another term, to be voted upon at an annual shareholders meeting on May 11. The company also seeks to expand by 4.5 million shares to 17.9 million its reserve of class A stock for employee compensation awards.
Google said it also did not plan to pay any stock dividends to shareholders “in the foreseeable future” as it intends to retain any future earnings. The company has never paid dividends in the past.