In a move that surprised industry analysts, Eric Schmidt will step down as Google’s CEO. Google cofounder Larry Page will take over as chief of the company while Schmidt settles into the chairman role.
While Page takes on the day-to-day management, Schmidt will focus externally on deals, partnerships, customers and broader business relationships, government outreach, and technology thought leadership. Internally, Schmidt will continue to act as an adviser to Page and cofounder Sergey Brin, who will focus on strategic projects, in particular new products. The changes will take effect on April 4.
“We’ve been talking about how best to simplify our management structure and speed up decision-making for a long time,” Schmidt said. “By clarifying our individual roles, we’ll create clearer responsibility and accountability at the top of the company. In my clear opinion, Larry is ready to lead, and I’m excited about working with both him and Sergey for a long time to come.”
How Will Page Do?
Greg Sterling, principal analyst at Sterling Market Intelligence, said that in one sense, it makes sense for Schmidt to take on a new role after a decade at the helm of Google. But, he added, there’s likely more going on than the public statements indicate.
“In terms of Google’s financial performance, there should be no change. The company is firing on almost all cylinders,” Sterling said. “However, I’m not sure that Larry Page has the ‘polish’ to be the company’s public face at this challenging time. Given all the legal and political challenges Google faces, it remains to be seen how well he’ll function as a spokesman for the company. Internally, employees might welcome the change with Page’s ascension as symbolic of a return to its roots.”
Google’s Future
Google also announced financial results for the quarter and the fiscal year ended Dec. 31. Schmidt said the…