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January 20, 2011

Google's New CEO: Larry Page

Eric Schmidt announced today that Larry Page will become Google's CEO.

Larry will now lead product development and technology strategy, his greatest strengths, and starting from April 4 he will take charge of our day-to-day operations as Google's Chief Executive Officer. In this new role I know he will merge Google's technology and business vision brilliantly. I am enormously proud of my last decade as CEO, and I am certain that the next 10 years under Larry will be even better! Larry, in my clear opinion, is ready to lead.

Sergey Brin's new title will be Co-Founder and he will work on strategic projects, while Eric Schmidt will be the Executive Chairman. "I will focus wherever I can add the greatest value: externally, on the deals, partnerships, customers and broader business relationships, government outreach and technology thought leadership that are increasingly important given Google's global reach; and internally as an advisor to Larry and Sergey," explains Eric Schmidt, who became Google's CEO in August 2001.


Here's an interesting excerpt from Google's 2004 SEC filling:
We run Google as a triumvirate. Sergey and I have worked closely together for the last eight years, five at Google. Eric, our CEO, joined Google three years ago. The three of us run the company collaboratively with Sergey and me as Presidents. The structure is unconventional, but we have worked successfully in this way.

To facilitate timely decisions, Eric, Sergey and I meet daily to update each other on the business and to focus our collaborative thinking on the most important and immediate issues. Decisions are often made by one of us, with the others being briefed later. This works because we have tremendous trust and respect for each other and we generally think alike. Because of our intense long term working relationship, we can often predict differences of opinion among the three of us. We know that when we disagree, the correct decision is far from obvious. For important decisions, we discuss the issue with a larger team appropriate to the task. Differences are resolved through discussion and analysis and by reaching consensus. Eric, Sergey and I run the company without any significant internal conflict, but with healthy debate. As different topics come up, we often delegate decision-making responsibility to one of us.

We hired Eric as a more experienced complement to Sergey and me to help us run the business. Eric was CTO of Sun Microsystems. He was also CEO of Novell and has a Ph.D. in computer science, a very unusual and important combination for Google given our scientific and technical culture. This partnership among the three of us has worked very well and we expect it to continue. The shared judgments and extra energy available from all three of us has significantly benefited Google.

Eric has the legal responsibilities of the CEO and focuses on management of our vice presidents and the sales organization. Sergey focuses on engineering and business deals. I focus on engineering and product management.

It's interesting to notice that today's announcement sends Google back in time. 10 years ago, Larry Page was Google's CEO and Eric Schmidt was the chairman. Now "day-to-day adult supervision [is] no longer needed."

7 comments:

  1. welcome aboard Larry Page and Well done Eric Schmidt!

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  2. all the best to Larry Page and Brin for new title, and Eric as executive chairman,

    thanks
    --
    http://publicitymonster.com.au

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  3. I agree with you about how this largely takes the triumvirate (seriously, I thought Google made this word up, before I checked it) back to 2004.

    For me, the question is, why now?

    I've been asked by my Corporations 2 professor to brief our class on Tuesday.

    What do you think -- why now?

    Eric Schmidt seemed to indicate Google was concerned about the speed of its decisions.

    NY Times writer MICHAEL J. DE LA MERCED thinks its to "inject new energy into a stumbling giant." (Stumbling? Google's 4th Q revenue grew 26% over 2009.)

    ZDnet's Larry Dignan at a minimum thinks Google's biggest threat may be Facebook/Google's struggles in social.

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  4. Great news.. Congrats Larry page.

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  5. Welcome back Mr Larry Page as Google CEO again :)

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  6. This is a wonderful comments. The things given are unanimous and needs to be appreciated by everyone.
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