Google Founders Will Resign from Decision Making in the Company

The company "Google" has announced that by 2014, company founders Larry Page and Sergey Brin will have sold most of the their shares and will no longer have a leading voice in decision-making. Source. In November 2009, they signed a long-term transfer of shares agreement which is a very common step in allowing the wealthy leaders to split their portfolios without fear in the market.

Larry Page and Sergey Brin have agreed to sell 5 million units of "Google" shares. After the sale, their shareholdings in "Google" will decrease from 18% to 15%. They will remain committed to the company and will be included in the daily management and strategy of the company. Most of their net assets will remain in the company. These pre-sale plans were arranged in order to allow Larry Page and Sergey Brin gradually sell their shares and to provide more sustainability in their property.

The former Stanford University students should get $2.75 billion for their shares.

In 2004 the company "Google" announced an initial public stock sale and created a dual-class share structure. Source. Class A shares are offered publicly, and the owner of one share is granted 1 vote. Class B shares are owned by Larry Page, Sergey Brin, Eric Schmidt, directors, first investors and the first key leaders; one share gives them 10 votes. Larry Page and Sergey Brin at present have 59 percent of the votes. After the sale of their shares, they will have 48 percent of "Google's" voting rights.

Currently, CEO Eric Schmidt has 9.5 percent of voting rights, so the triumvirate owns more than 50 percent of the company's voting rights. And plus, the director, the main leaders and the company's key players own 70.9 percent of all voting rights. In its initial public offer letter in 2004 the company wrote that the new investors will have to accept "Google's" long-term economic future plans and will have little opportunity to influence the company's strategic decisions.

Let us hope that "Google" will continue to spread education as well as innovative ideas and it will not become another aggressive, profit-making enterprise when the founders Larry Page and Sergey Brin sell a part of their decision making rights.

Source: http://www.smartcompany.com.au/internet/2010-01-25-google-co-founders-larry-page-and-sergey-brin-to-sell-off-10-million-shares.html