Larry Page Steps Down As CEO Of Alphabet, Sundar Pinchai To Take Over
- Posted on December 05, 2019
- Stock Market
- By admin admin
Cofounder
of Google, Larry Page is stepping down as CEO of Alphabet and handing the reins
to current CEO of Google Sundar Pichai, who will now hold both positions, the
company, this is according to an announcement made by the company on Tuesday. Page
and cofounder Sergey Brin, who is stepping down as Alphabet’s president, will
remain on the company’s board of directors.
“With Alphabet now well-established, and Google and the Other
Bets operating effectively as independent companies, it’s the natural time to
simplify our management structure,” Page and Brin wrote in a blog post
announcing the change. “We’ve never been ones to hold on to management roles when
we think there’s a better way to run the company. And Alphabet and Google no
longer need two CEOs and a President.”
Larry Page first became CEO of
Alphabet when Google announced a massive corporate restructuring in 2015, which
separated its profitable advertising business from its longer-term efforts,
including self-driving car company Waymo and health-tech firm Verily, which
Alphabet refers to as its “Other Bets.” Pichai, who had previously run Google’s
Android and Chrome units and has been at the company for 15 years and became
CEO of Google at that time.
Neither of them has had much of a
public presence in recent years, despite being cofounders and top executives.
At Alphabet’s annual meeting in June, multiple shareholders criticized the fact
that Page did not show up given that he and Brin have more than 50% of the
company's voting power, due to the nature of Alphabet’s multi-class stock
structure. That structure will not change despite the management shift, the
company said.
As Google’s empire of products and
services has ballooned from the search engine that the duo launched in 1998,
the cofounders’ stakes in the company have made them enormously wealthy.
Forbes’ pegs Page’s net-worth at nearly $60 billion, while Brin clocks in only
slightly behind him.
The news is coming
at a time when Alphabet is facing extensive challenges, both externally and
from its own employees. As scrutiny of Big Tech has increased in Washington, an
antitrust probe of Google could reportedly
include not just its advertising business, but
search and Android as well. Meanwhile, Google employees have repeatedly had
a clash with management on company policies
and business practices. An example is the story of which more than 20000
worked walked out of offices around the world,
which was contained in a New York Times fall in 2018. Employees have also
publicly protested the company’s contracts with the Department of Defense
and U.S. customs and border protection, its treatment of contract staff, and most recently, the firing of four company organizers.
Stocks of Alphabet
rose less than a percent after-hours on Tuesday.
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