Google CEO Joins Parent Company Alphabet’s Board of Directors

Davis Hamilton July 25, 2017
Google CEO Joins Parent Company Alphabet’s Board of Directors

Google CEO Sundar Pichai has joined its parent Alphabet's board of directors, becoming the 13th board member as the appointment is another signal of his rising importance at the company, and the trust the founders place in him.

After more than a decade working at Google, Pichai was named CEO of the company when it was re-organized in August 2015 into a unit of Alphabet.

Pichai's appointment grants Google, responsible for 90% of Alphabet's revenue, a second vote on the board. The only other Google executive with a seat on the board is Diane Greene, head of Google's cloud division.

“Sundar has been doing a great job as Google’s CEO, driving strong growth, partnerships, and tremendous product innovation. I really enjoy working with him and I’m excited that he is joining the Alphabet board,” Alphabet CEO Larry Page said in a statement.

The addition of Pichai adds another company officer to the board, which already includes Google co-founders Larry Page, now Alphabet CEO, and Sergey Brin, president, and chair and former CEO Eric Schmidt. Outside of Google, Alphabet hosts several early-stage companies in a variety of sectors, including its self-driving car unit, Waymo, and two healthcare efforts.

The move also resolves a potentially awkward situation as CEO, Pichai was responsible for the Google Cloud business run by Diane Greene, but Greene also had mistake of Pichai as an Alphabet board member.

Pichai, 44, has been a Google employee since 2004 and rapidly rose through the executive ranks to become CEO after the formation of Alphabet.

Since Pichai became CEO, he has shuttled resources toward artificial intelligence research and cloud-computing while maintaining steady growth of Google’s main advertising business. During his tenure, Google’s stock has risen about 50 percent. Alphabet gave him $199.7 million in compensation in 2016.

By way of comparison, Apple and Amazon each has only 1 insider on their boards (CEOs Tim Cook and Jeff Bezos respectively) and Microsoft has 3 insiders on its 12-person board (including LinkedIn founder Reid Hoffman, who joined after Microsoft bought LinkedIn). Facebook's board is more heavily stacked toward insiders, with 3 out of 8 (including WhatsApp founder Jan Koum).

Separately, after the market close on Monday, Alphabet reported adjusted second-quarter earnings of $5.01 per share on revenue of $26.01 billion versus analyst expectations of $4.46 per share on revenue of $25.6 billion.

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Davis Hamilton


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