Eric Schmidt, the Executive Chairman of Alphabet, will step down in January’2018. Mr. Schmidt joined Google in 2001. He helped Google to go public in 2004 and has played a major role in making Google an internet search giant that it is today. In 2011, he was appointed as the Executive Chairman and became a prominent representative of the company in Washington.
Mr. Schmidt will relinquish his role in the company’s next board meeting in January’2018 and will continue as a board member and a technical advisor. The parent company, Alphabet, will be adding a new Executive Chairman.
No reason was provided for this change. In his statement, Mr. Schmidt said that he along with Mr. Page, Mr. Brin and Mr. Pichai “believe that the time is right in Alphabet’s evolution for this transition.” Mr. Shmidt also alluded the new generation in his statement, “I’m incredibly excited about the progress our companies are making, and about the strong leaders who are driving that innovation”.
This shift may have caused due to reducing effect of Mr. Schmidt in the organization and a new generation of leaders is ready to be in charge of organization. The inclusion of Mr. Pichai in the statement along with Mr. Page and Mr. Brin is also indicative of a strong coalition building in the organization.
Although, Mr. Schmid’s stepping back will have little practical effect on the organization’s day-to-day operations, it will be a major personnel shift for the organization.