The sale amounts to 42 per cent of Schmidt's 7.6 million Class A and Class B shares in the company, a 2.3 per cent stake in the company, but 8.2 per cent 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 per cent yesterday to a new all-time record of USD 785.37, putting the value of the shares Schmidt will sell at USD 2.51 billion.
In its September 2012 billionaires list - when Google shares crossed the USD 700 line for the first time - Forbes ranked Schmidt 138th in the world, with his fortune worth USD 7.5 billion.