Google founders Larry Page and Sergey Brin have turned down a raise and instead decided to rely on the success of GOOG (Google) stock. Google co-founders Larry Page and Sergey Brin each have a $1 salary. In addition, Google CEO Eric Schmidt turned down a raise, also sticking to his $1 salary and stock options. Read the entire CNN article: Google leaders stick with $1 salary
I wish more CEOs and overpaid executives would take this approach. By keeping a $1 salary, the Google leaders are completely relying on the performance of GOOG stock prices to make them money. Shareholders love this because the Google execs have to think about their own fortunes – about $5 billion for Schmidt and over $12 billion each for Page and Brin – when running Google. If Google fails, they lose everything. Also, Google’s revenues and profits are not foolishly spent on over-abundant salaries, like some other publicly traded companies.
By keeping a $1 salary, the Google co-founders are letting shareholders know they are looking out for best interest of the shareholders. The $1 salary with options is also a way of telling shareholders Google has a profitable and successful future with steady leadership.
I’m a huge fan of Google as stock and as a company with innovative, useful, and efficient products and tools. Unfortunatley, I don’t currently own any GOOG shares. I am kicking myself for not buying in at the GOOG $340 price dip!
What are your thoughts on the $1 salary? Any Google shareholders out there?
They should be glad I don’t have any Google stock. Every stock I buy goes down.