Web chiefs fly high in $278,000 private jet deal

Click to follow
The Independent Online

Google's founders Sergey Brin and Larry Page famously keep their workers happy with such down-to-earth benefits as meals, health care and even washing machines.

Google's founders Sergey Brin and Larry Page famously keep their workers happy with such down-to-earth benefits as meals, health care and even washing machines.

But the founders are also happy to allow the company's executives to enjoy the more colourful trappings of dot.com wealth, including flying around in corporate jets leased from Eric Schmidt, Google's chief executive, to the tune of $278,119 (£157,129) a year.

However, by leasing the jets from Mr Schmidt, who part-owns the aircraft, the company's expenditure on private jets is actually kept to a minimum, Google said in its IPO filing with the Securities and Exchange Commission on Thursday.

Google has revealed that Mr Schmidt has agreed to pay to the company all the annual net profits he receives as a result of his interest in the jets.

The details of Google's executive jet arrangements are contained in the section of its SEC filing covering related party transactions.

Mr Schmidt owns an interest in two jets that are managed and operated by Apex Aviation that he allows certain, unnamed, Google executives to use. Google said that in 2003 it paid Apex $278,119 and reimbursed Mr Schmidt personally $20,214 for the use of these planes.

Google said: "Eric is entitled to receive a portion of the profits earned by Apex resulting from its operation of these planes. Eric has agreed to pay us any and all annual net profits distributed to him as a result of his ownership of an interest in the jets. The reimbursements to Eric related to business flights where Eric was billed by Apex for use of the planes. These were approved by our board of directors and based upon a competitive analysis of comparable leased aircraft."

Comments