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Google CEO Eric Schmidt Accepted No Salary or Stock for Apple Board Service

BusinessWeek reports that Google CEO Eric Schmidt received no salary or stock compensation for his service on Apple's Board of Directors, accepting only Apple gear and a "commemorative gift" in exchange for his services. Schmidt recently resigned from Apple's Board due to limitations on his effectiveness as the two companies have become competitors in an increasing number of areas.

Schmidt's decision not to be paid for his Apple service differs from the compensation plan Apple put in place for directors in 1997, around the time Steve Jobs returned as CEO. Under the plan, Apple grants outside directors the option to acquire 30,000 Apple shares. The options vest over three years. For every year after that, directors are granted options to purchase an additional 10,000 shares, which vest immediately.

Additionally, Apple pays directors an annual fee of $50,000, in quarterly increments of $12,500. Apple filings show that Schmidt, from the beginning of his service as a director in 2006, declined both the retainer fee and the stock options.

Schmidt did reportedly receive Apple gear valued at $8,712 in fiscal 2008 as part of Apple's program offering to Board members one of each new product introduced and discounts on additional merchandise. Each director, including Schmidt, also received a "commemorative gift" in fiscal 2008 valued at $7,580, as well as a cash payment to offset the tax liability of the gift.

Like Jobs at Apple, Schmidt accepts only a $1 per year salary for his CEO position at Google, and has also declined stock options for the past several years.