Google co-founders, Larry Page, Sergey Brin step aside while Sundar Pichai takes command of Alphabet Sr.
SAN FRANCISCO: Google director Sundar Pichai will replace Larry page as CEO of parent company Alphabet Inc, extending a long retreat of public roles and active management of Page and Sergey Brin in the company they co-founded 21 years ago.
While it has been a great privilege to be deeply involved in the daily management of the company for so long, we believe it is time to take on the role of proud parents: offer advice and love, but not scold on a daily basis! Page and Brin wrote in a blog on Tuesday.
I am excited about Alphabet's long-term approach to addressing big challenges through technology. Thanks to Larry and Serge ... https://t.co/VAtzwXbIt3 - Sundar Pichai (@sundarpichai) 1575418006000
Page, Brin and Pichai have shared an emphasis on developing artificial intelligence software to expedite web search and other tasks, while Pichai, the long-time product leader, has increased efforts to make such technology Be available worldwide.
But the vision faces unprecedented scrutiny, with governments on five continents demanding better safeguards, less anti-competitive behavior and more taxes from the world's largest online advertising company. Thousands of employees have protested, and some have even resigned, over ongoing uncertainty over why the don't be evil dogma famous to Google - and once embraced by Page and Brin - appears to be cracking.
Streamlining management could help Alphabet respond better to challenges and focus on rising profits, investors said.
This indicates a departure from more frank efforts, such as the Loon Project, and more towards a company focused on money-making technology, said Kim Caughey Forrest, chief investment officer at Bokeh Capital Partners, referring to Alphabet's Internet balloons. deal.
Alphabet, which owns more than a dozen companies including self-driving car technology business Waymo and health care software company Verily, emerged in 2015 as part of a restructuring of Google.
Page, who is known for having big expectations and strong thoughts on technological details, had wanted to focus on developing those newer businesses, which collectively lose money. He left Alphabet's biggest and most profitable unit, Google, to the similarly soft-spoken Pichai, who heavily delegates to direct reports to manage various product lines. Brin had stayed on as Alphabet's president, spending some time on robotics and other research projects.
But Page and Brin, once regular sights at public events and at Google headquarters, are now seen much less often. The pair of 46-year-olds' retreat into the background, particularly for Page as CEO, had drawn criticism in the last two years from employees and U.S. lawmakers that demanded answers from him rather than Pichai about controversial company projects such as an experimental search app for Chinese users.
Meanwhile, Page's oversight work fell largely on Alphabet's financial director, Ruth Porat, for start-ups, and Alphabet's legal director, David Drummond, for the company's two large investment funds. .
Page and Brin will continue to be directors, but they will yield their titles of CEO and president, respectively, immediately, Alphabet said. The role of president will not be fulfilled, the company said, describing the changes as discussed for a long time.
Page's voice has been affected for years due to a chronic condition, but his health did not play a role in the decision to step aside, Alphabet said.
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, the co-founders said. We are deeply committed to Google and Alphabet for the long term.
While backing publicly, the co-founders still control more than 51% of the shares. As of April, Page had 26.1% of Alphabet's total voting power, Brin 25.25% and Pichai less than 1%.
Alphabet shares rose 0.64% after the announcement out of hours to $ 1,303.
The company had used the separation between Page's and Pichai's roles to defend its limited financial disclosures about YouTube and other businesses owned by Google when the practice was questioned by US securities regulators in 2017.
He said the publicly reported financial results were in line with what Page reviewed as CEO of Alphabet. Regulators did not take any more measures, but the company's position has frustrated investors seeking to deeply evaluate the company's performance.
Alphabet declined to comment on whether public financial reports would change with Pichai assuming both CEO positions.
Pichai, 47, who has spent 15 years at Google, rose to prominence while leading development of Google's Chrome browser. He later led product development and engineering across all of Google's services for a year before gaining the CEO title and adding with it oversight of Google's advertising and cloud computing business.
Page and Brin are active in other companies. Page financing launched a company trying to develop flying cars, and Brin at a conference last year discussed an emerging interest in cryptocurrency.