The plan disclosed Friday calls for Schmidt to sell up to 3.2 million shares. If he were to sell all that stock at Google's current price, Schmidt would realize a $2.5 billion windfall.
Schmidt ended December with 7.6 million Google shares, or a 2.3 per cent stake in the Mountain View, Calif., company.
Google co-founders Larry Page and Sergey Brin are the only company executives who own more stock than Schmidt. Page controls an 8.7 per cent stake and Brin holds an 8.5 per cent stake.
The 57-year-old Schmidt was Google's CEO for a decade before turning over the job to Page in April 2011.