Google founders to cede majority voting rights in 5 years

By on January 25, 2010, 12:41 PM
Google co-founders Larry Page and Sergey Brin have announced plans to sell 10 million of their shares over the next five years to prevent a major one-time impact on the stock market. Besides earning the duo approximately $2.75 billion each, based on Friday's closing price of $550.01, the move means Page and Brin will control less than half the voting power of Google shares by the time their plans are completed.

Specifically, it would reduce their combined voting shares from 59% to about 48%. Stockholders might have a bigger say in where the company is headed, but the pair was quick to reassure they remain committed as ever to Google and are integrally involved in its day-to-day management and product strategy.

Although the fact that they are ceding majority control is a significant development we probably won't see any big changes coming out of this. It should be noted that the company's CEO, Eric Schmidt, has 10% voting power, so Google's senior management will still remain firmly at the wheel.




User Comments: 2

Got something to say? Post a comment
Puiu Puiu said:

Only $2.75 billion each? Pocket change!

raybay said:

This news is simply SHOCKING. What were they thinking?

Load all comments...

Add New Comment

TechSpot Members
Login or sign up for free,
it takes about 30 seconds.
You may also...
Get complete access to the TechSpot community. Join thousands of technology enthusiasts that contribute and share knowledge in our forum. Get a private inbox, upload your own photo gallery and more.