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Google "Awards" Eric Schmidt a $100 Million Slap in the Face

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Anxiety. Fear. Doubt. For anyone on the cusp of leaving a job, emotions like these are par for the course.

And for outgoing Google CEO Eric Schmidt, the latest news surrounding his departure must have his stomach in knots.

That’s because it’s just been reported that Google will give Schmidt a measly, paltry, dare I say insulting $100 million in equity awards for handing over his job to co-founder Larry Page.

That’s right…just $100 million.

Now, sure, $100 million might sound like a lot to you and me, but for Schmidt, it’s more like a hot loogie to the face coupled with some insult about his mother. Schmidt’s current holdings in Google make him worth close to $6 billion. Which makes this so-called “award” a mere 1.6% of his total worth. For a little perspective, 1.6% of the average American’s net worth (in 2007, it was $120,300) is $1,924. That might be enough to get by on Ramen noodles for the year, but it ain’t gonna last long when you’re striking out looking for another “job,” especially when, like Schmidt, you’re not exactly a young whippersnapper anymore.

Schmidt’s “award,” if that’s what you can even call it, will include stock units and options that will vest over four years. And believe you me, that’s gonna be a long four years of obsessively checking Yahoo! Finance stock charts.

Without a doubt, Schmidt is troubled about getting over this rough patch. He’s planning to sell 534,000 shares of Google stock over the next year that could be worth $335 million. That should be enough to get him through a few cold winters, but at 55, Schmidt will need to think seriously about his long-term retirement plans if he intends to keep his head above water during his golden years.

So, Mr. Schmidt, we wish you well during the rough road ahead. We’ve all been there. Ten years at a company you loved, only to be given a lousy, cheap watch or worse, some “stock” in a company that “might” be worth a few hundred million. Nobody said life was fair. 
POSITION:  No positions in stocks mentioned.