Eric Schmidt selling nearly half of his Google stock

Summary:Google's executive chairman is selling off a considerable portion of his Google stock portfolio -- and some voting power.

eric-schmidt-google

Google's executive chairman Eric Schmidt is selling off nearly half of his stock in the Internet giant.

The news came about on Friday afternoon through a filing with the U.S. Securities and Exchange Commission.

According to the document, Schmidt owned roughly 7.6 million shares of Class A and Class B common stock, which represented about 2.3 percent of Google's outstanding capital stock and 8.2 percent of the voting power of Google's outstanding capital stock.

The former CEO is now planning to sell up to approximately 3.2 million shares of Class A common stock. That reduces his share in the Mountain View, Calif.-based corporation by approximately 42 percent.

Here's a snippet from the 8-K filing about Schmidt's (and Google's) explanation for the move:

The pre-arranged trading plan was adopted in order to allow Eric to sell a portion of his Google stock as part of his long-term strategy for individual asset diversification and liquidity. The stock transactions pursuant to this trading plan will be disclosed publicly through Form 4 and Form 144 filings with the U.S. Securities and Exchange Commission. Using this trading plan, Eric can diversify his investment portfolio and can spread stock trades out over a period of one year to reduce market impact.

Soon after the news broke, Google shares were down -- albeit slightly -- in after hours trading:

zdnet-google-shares-feb-8-2013

Screenshot via MarketWatch

Topics: Google, Tech Industry

About

Rachel King is a staff writer for CBS Interactive based in San Francisco, covering business and enterprise technology for ZDNet, CNET and SmartPlanet. She has previously worked for The Business Insider, FastCompany.com, CNN's San Francisco bureau and the U.S. Department of State. Rachel has also written for MainStreet.com, Irish Americ... Full Bio

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