Schmidt is selling 3.2 million of the 7.6 million shares he owns, according to The Guardian. With shares worth $785.37 each on Friday (February 8), the former CEO's sale would be valued at £1.6bn ($2.5bn).
Google disclosed details in a filing with the US Securities and Exchange Commission and stated that the sale would be spread out across a year so as not to impact upon the company's share price. The filing cited that Schmidt would benefit from being able to "diversify his investment portfolio".
Schmidt resigned from the role of CEO in 2011 after holding the position for 10 years, at which point co-founder Larry Page became chief executive.
Google recently donated 15,000 Raspberry Pi computers to schools around the UK in a bid to develop computing education.