GOOGLE CEO Eric Schmidt will step aside and make way for co-founder Larry Page to take the reins, in a surprise announcement that came as the company reported better-than-expected quarterly results.
Shares in the internet search and advertising leader rose about 2 per cent to $639 (€474) in extended trading.
Mr Page, who co-founded Google with Sergey Brin, will take charge of day-to-day operations as chief executive.
Mr Schmidt, who became CEO in 2001 to bring more management experience to the young company, will assume the role of executive chairman, focusing on deals and government outreach, among other things. Mr Brin will concentrate on strategic projects.
“Day-to-day adult supervision no longer needed!” Mr Schmidt tweeted after the announcement.
The abrupt shift comes days after Apple CEO Steve Jobs announced a leave of absence, leaving lieutenant Tim Cook in charge of day-to-day operations. Like Google, Apple also announced results this week that blew past Wall Street’s estimates.
“The Street will think it’s a negative, that there is probably some issue going on. Google is trying to get more efficient and trying to get a tech guy in the seat to compete with Facebook,” said UBS analyst Brian Pitz. “I don’t think it changes anything strategically where the company is headed.”
Google said the management change was made as part of a plan to “streamline” decision-making and create clearer lines of responsibility and accountability at the top.
It said Mr Schmidt plans to sell about 534,000 shares of Class A common stock. Based on Google’s closing share price of $626.77 on Thursday, he would earn about $334.7 million on the stock sale. – (Reuters)
