- Push-out Score determined
- After around 21 years in the position
- Praise and thanks for Page
- Sundar Pichai taking over
- Page and Brin made a lengthy statement and said 781 words
(exechange) — Mountain View, California, December 4, 2019 — Larry Page, chief executive of Alphabet, leaves. As announced by Alphabet Inc. in a news release published on Tuesday, December 3, 2019 and in a regulatory filing published on Wednesday, December 4, 2019, Lawrence Edward (Larry) Page leaves his post as Chief Executive Officer at the multinational conglomerate company after around 21 years in the role, effective immediately.
It is the end of an era.
Among the 3,000 largest publicly held companies incorporated in the U.S. based on market capitalization, the average tenure of the CEOs who announced their departure over the past 12 months was 7.5 years, according to data compiled by exechange. On an accumulated basis, around 4% of the CEOs who announced their departure over the past 12 months left their posts after more than 20 years.
Larry Page’s duties as CEO will be taken over by Sundar Pichai, currently Chief Executive Officer of Google LLC.
Larry Page’s move is part of a management shake-up also involving the position of President.
“It’s the natural time to simplify our management structure”
The management change is explained as follows. Larry Page and Sergey Brin, the CEO and President, respectively, of Alphabet, said: “Today, in 2019, if the company was a person, it would be a young adult of 21 and it would be time to leave the roost. While it has been a tremendous privilege to be deeply involved in the day-to-day management of the company for so long, we believe it’s time to assume the role of proud parents—offering advice and love, but not daily nagging! 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. 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.”
Precise information regarding Larry Page’s future plans was not immediately available.
Alphabet said: “Larry Page and Sergey Brin, the CEO and President, respectively, of Alphabet, have decided to leave these roles. They will continue their involvement as co-founders, shareholders and members of Alphabet’s Board of Directors.”
Alphabet further said: “Larry Page and Sergey Brin have decided to transition from their roles as Alphabet’s Chief Executive Officer and President, respectively.”
Share price increase since December 2014
The announcement follows an increase in Alphabet Inc.’s share price of 146% since December 2014.
Chaired by John L. Hennessy
Alphabet Inc. is chaired by John L. Hennessy.
John L. Hennessy has served as a member of the Company’s Board of Directors since April 2004 and as Chairman of the Board of Directors since January 2018. Hennessy previously served as the Company’s Lead Independent Director from April 2007 to January 2018.
In the position of CEO since 1998
Larry Page became CEO of the Company in 1998.
Larry Page was one of Google’s Founders and has served as a member of the Company’s Board of Directors since its inception in September 1998, and as Google’s Chief Executive Officer from April 2011 to October 2015 (when he became the Chief Executive Officer of Alphabet).
From July 2001 to April 2011, Larry Page served as Google’s President, Products.
In addition, from September 1998 to July 2001, Larry Page served as Google’s Chief Executive Officer, and from September 1998 to July 2002, as Google’s Chief Financial Officer.
Larry Page holds a Master of Science degree in computer science from Stanford University and a Bachelor of Science degree in engineering, with a concentration in computer engineering, from the University of Michigan.
Push-out Score determined
The Push-out Score™ determined by exechange gauges the pressure surrounding the management change on a scale of 0 to 10.
exechange reached out to Alphabet and offered the company the opportunity to comment on the score.
Read the full story in the exechange report 49.2019 ($).