DIVESTING? Google's Chairman Eric Schmidt is selling 42% of his shares in the company. Photo by AFP

WASHINGTON, United States - Google's Chairman Eric Schmidt plans to sell 3.2 million "A" shares, currently worth $2.5 billion, over the next year, Google said Friday, February 8, in a filing with the Securities and Exchange Commission.

The sale amounts to 42% of Schmidt's 7.6 million Class A and Class B shares in the company, a 2.3% stake in the company, but 8.2% of voting power.

The sale is part of a pre-arranged trading plan for Schmidt's "long-term strategy for individual asset diversification and liquidity," according to the filing.

"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."

Google's share price climbed 1.5% Friday to a new all-time record of $785.37, putting the value of the shares Schmidt will sell at $2.51 billion.

In its September 2012 billionaires list -- when Google shares crossed the $700 line for the first time -- Forbes ranked Schmidt 138th in the world, with his fortune worth $7.5 billion. - Rappler.com