Google is Larry Page's show now

An executive shake-up breaks up the three-way decision team at Google, as co-founder Larry Page replaces Eric Schmidt as CEO.

By TheStreet Staff Jan 20, 2011 6:27PM

thestreetBy Scott Moritz, TheStreet

 

Google (GOOG) is breaking up the band.

 

The company says its unique and somewhat clunky executive triad will be streamlined in April. According to the plan, CEO Eric Schmidt will be replaced by Google co-founder Larry Page.

 

Schmidt, who was long thought of as the seasoned hand and management talent at the search giant, will take the executive chairman title.

 

The restructuring also includes the departure of Sergey Brin from the management team. Brin's new role will be far less central to Google's core operations and he will have the title of "co-founder."

 

"Sergey has decided to devote his time and energy to strategic projects," Schmidt wrote in the Google blog.

The move comes as Google announced stronger-than-expected earnings and sales for the fourth quarter. Schmidt acknowledged the company's bright performance, but added that behind the scenes, there may have been leadership struggles.

 

"As our results today show, the outlook is bright," Schmidt wrote. "But as Google has grown, managing the business has become more complicated."

 

The three-way decision process at Google was never depicted as a cozy session of like-minded individuals all agreeably on the same page; apparently the trio decided on a more conventional organization chart.

 

We "agreed to clarify our individual roles so there's clear responsibility and accountability at the top of the company," Schmidt wrote.

Schmidt holds out that he, Brin and Page will all continue to work together for a long time to come, but the shakeup suggests otherwise.

 

"Eric was the grownup," says one analyst. "It's almost a little like Facebook now," he added, referring to the decision-making role of the social network's founder and CEO Mark Zuckerberg.

 

Investors seemed to focus more on the financial performance and less on the executive breakup. Google shares were up 2% to $642.55 in after-hours trading Thursday.

 

Related Articles

0Comments

DATA PROVIDERS

Copyright © 2014 Microsoft. All rights reserved.

Fundamental company data and historical chart data provided by Morningstar Inc. Real-time index quotes and delayed quotes supplied by Morningstar Inc. Quotes delayed by up to 15 minutes, except where indicated otherwise. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by Morningstar Inc.

STOCK SCOUTER

StockScouter rates stocks from 1 to 10, with 10 being the best, using a system of advanced mathematics to determine a stock's expected risk and return. Ratings are displayed on a bell curve, meaning there will be fewer ratings of 1 and 10 and far more of 4 through 7.

116
116 rated 1
284
284 rated 2
461
461 rated 3
671
671 rated 4
628
628 rated 5
618
618 rated 6
615
615 rated 7
495
495 rated 8
347
347 rated 9
115
115 rated 10
12345678910

Top Picks

SYMBOLNAMERATING
DYNDYNEGY Inc10
TAT&T Inc9
VZVERIZON COMMUNICATIONS9
EXCEXELON CORPORATION8
AAPLAPPLE Inc10
More

VIDEO ON MSN MONEY

ABOUT

Top Stocks provides analysis about the most noteworthy stocks in the market each day, combining some of the best content from around the MSN Money site and the rest of the Web.

Contributors include professional investors and journalists affiliated with MSN Money.

Follow us on Twitter @topstocksmsn.