Google co-founder Larry Page promotes seven executives to run the company’s most important divisions. They will report directly to him in an effort to cut bureaucracy and speed decision making.
Returning Google CEO Larry Page, right, shown with co-founder Sergey Brin in 2004, aims to restore the sense of urgency and innovation that drove the company’s earlier successes, analysts say. (John MacDougall, AFP/Getty Images / October 7, 2004)
The Larry Page era has officially begun — with a management shake-up.
Just days after returning as Google Inc.’s chief executive, Page swiftly set the tone for how he would run the Internet search giant with a major reorganization of his management team.
Page is trying to restore the sense of urgency and innovation that drove Google’s prior successes, analysts said. The reorganization also puts him firmly in charge of the world’s largest Internet company in much the same way Steve Jobs runs Apple Inc.
“Larry’s coming out of the gate blazing,” said BGC Partners analyst Colin Gillis.
The 38-year-old co-founder promoted seven executives to run Google’s most important divisions. They will report directly to him in an effort to cut out bureaucracy and speed up decision making.
Page reorganized his management team the same week that Jonathan Rosenberg, a senior vice president who oversaw four of the executives, said he would leave Google.
Some analysts said Page was taking a much-needed step to reinvigorate Google as it faces mounting competition from nimble rivals for users and advertising dollars.
Page is also shaking up Google’s rank and file. He plans to tie 25% of employee annual bonuses to the success of Google’s social networking initiatives.
“He’s clearly not just going to be Eric Schmidt 2.0,” Gillis said.
Page was Google’s first chief executive before handing the reins to Schmidt in 2001 when the company was a barely profitable start-up with 200 employees. The pair, along with co-founder Sergey Brin, ran the company in an unusual power-sharing agreement, and for years Page called the shots on Google’s most important product initiatives.
On Monday, Page began calling all the shots for the company, which now generates nearly $30 billion in annual revenue and has more than 24,000 employees.
“Larry’s decisions will be under the microscope over the next year or two, but it will be a while before we can really judge him on his ability to run the company,” said John Lutz, senior research analyst with Frost Investment Advisors, which owns Google shares.
The promotions signal which areas will be a priority for Page. The executives Page elevated to senior vice president include Andy Rubin, who is in charge of Android mobile phone software; Salar Kamangar, who runs YouTube and video; Sundar Pichai, head of the Chrome Web browser and operating system; and Vic Gundotra, who is focused on Google’s social networking strategy to compete with a wave of young Web companies, most notably Facebook Inc.