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Google to pay cash to some board members

* Google non-employee directors to get $75,000 retainer

* $500,000 stock grant for certain fully-vested directors

SAN FRANCISCO, Aug 7 (Reuters) - Some Google Inc GOOG.O board members will get an annual cash payment, providing a regular compensation for directors whose equity grants are fully vested, the company said on Friday.

Non-employee board members will get a yearly retainer of $75,000 and an annual grant of $350,000 in Google stock units once their previously issued equity grants are fully vested, the Internet search company said in a regulatory filing.

Google previously did not pay board members in cash.

“Our directors who are fully vested are functionally not being compensated,” said Google spokeswoman Jane Penner. “In order to continue providing them appropriate compensation, we’ve put in place a traditional compensation structure similar to that used by many of our peers.”

Non-employee directors whose equity grants were fully vested as of July 7, including Intel Corp INTC.O Chief Executive Paul Otellini and ex-Genentech CEO Arthur Levinson, recently received a one-time grant of $500,000 in Google stock units, the company said.

Non-employee directors whose grants are not yet fully vested will receive a $500,000 one-time stock unit grant on the first Wednesday of the month following the final vesting date of previous equity grants.

Google will pay the annual cash retainer and stock unit grants following the first stockholder meeting after the one-time grants are made.

Google CEO Eric Schmidt and founders Larry Page and Sergey Brin do not receive compensation for their board service.

The company did not grant equity awards to its directors in 2008.

The U.S. Federal Trade Commission is investigating the relationship between the boards of Google and Apple Inc AAPL.O. Levinson sits on the boards of both companies. Earlier this week, Schmidt stepped down from Apple's board.

Reporting by Alexei Oreskovic. Editing by Robert MacMillan

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