Who is Google’s big boss? Alphabet publishes details of Page and Pique’s terms of reference

The just announced communications agreement between Alphabet, the parent company of Google, and the U.S. Securities and Exchange Commission reveals the company’s decision-making details about the different businesses of its 12 companies.

Figure: Google parent company Alphabet CEO Larry Page (Larry Page)

Google reorganized its corporate structure in late 2015 to form Alphabet, which now strips Google from “other bets.” Among them, Google has advertising business, as well as other businesses (such as cloud computing and hardware). The “other bets” include 11 different companies, such as Waymo, a driverless car company, and Verily, a medical subsidiary.

At the end of last year, the SEC questioned the details of how Larry Page, the chief executive of Alphabet, has the power to make decisions in Google’s business and asked PCCG, Sergey Brin, As well as different information gained between Google CEO Sundar Pichai.

In accordance with the U.S. Securities and Exchange Commission’s communications rules, Alphabet gave a reply on December 15 last year, and the content was released today. Although this information provided by Alphabet is not as shocking as it is, Alphabet provides unusual insight into the company’s complex structure and the authority of executives in decision making. Here are some interesting insights:

Page is the same for every company

As the CEO of Alphabet, Page regularly receives financial information from each of the Alphabet subsidiaries, but he is not responsible for the allocation of resources within Google or “other bets.”

Weekly, Page will receive reports summarizing the company’s revenue and operating profitability as a whole, combined with other bets.

Each month, Page will receive “other bets” operating results. Every quarter, he receives the results of Alphabet’s operations, including the breakdown of revenue from Google’s products and the operating performance of each subsidiary.

Within Google, Page does not receive certain profitability or expense information as part of a weekly, quarterly, or any other periodic report. For example, Page does not receive reports that show the profitability of YouTube and Google Cloud.
Page proposed to compensate Google CEO Pichajs and CEOs responsible for “other bets”, but without the compensation of other executives.

The CEOs of the subsidiaries of Alphabet include:

GV: Venture Capital – David Krane
Capital G: Growth Equity Investment – David Lawee
Verily: Health Care – Andrew Conrad
Calico: Biotech – Arthur Levinson
Jigsaw: Geo-political think tank – Jared Cohen
Chronicle: Web Security – Stephen Gillett
DeepMind: Artificial Intelligence Research – Demis Hassabis
Waymo: Driverless Car – John Krafcik
Sidewalk Labs: Urban Innovation – Dan Doctoroff
X: R & D Labs – Astro Teller
Access: Network Provider – Dinesh Jain

Pizzeria, Google’s chief executive, has absolutely nothing to do with “other bets.”

Although Alphabet last quarter’s earnings were all from Google, which also accounted for more than 98% of Alphabet’s total revenue, Pizarz neither received any financial information on Alphabet’s “other bets” nor did it have any decision-making power.

Take Nest as an example. This non-interference relationship is most vividly demonstrated. In 2014, Google acquired Nest for $ 3.2 billion. When Nest peeled from Alphabet to become an independent subsidiary, it has no connection with Google. But in the end, Alphabet decided to reintroduce Nest back to Google earlier this month.
Picaj did not have the power to allocate all of Alphabet’s resources to Google, but he had a huge influence within Google. Inside Google:

Picazzies receive weekly and quarterly reports, including financial information for each of Google’s product areas, such as YouTube, ads, and hardware, including operating results, capex and Google’s total workforce. Quarterly results include operating results for each product area and product category, specific feature support and number of employees.
Both Page and his co-founder, Alphabet chief Sergey Brin, have not received Picassies’s weekly and quarterly reports.

Even without the approval of Page, Pizzeria could make non-standard licenses or similar arrangements at Google to invest in and merge the acquisitions of butchers. In addition, capital expenditures, real estate, business arrangements, including licensing, cooperation, revenue generation agreements, and other similar transactions and spending, have met the set dollar threshold (undisclosed).

While both Susan Wojcicki and Diane Greene hold the “CEO” title within Google for YouTube and cloud computing respectively, Pizjac is Google’s only Executives who contact and maintain direct contact with Page.

Brin and Ruth Porat

Brin will receive the same report as Page. In addition to Page, he also needs to review the annual business plan for “other bets,” but Page must give the final approval.

Both Brin and Page will oversee “other bets” and occasionally work with Google leaders in different product areas, but these leaders do not have a direct responsibility or contact with them. The “interaction” between Page and Brin is a proposal for engineering and technical specifications for research and product development programs.

Borat, the chief financial officer at Alphabet, is involved in the annual business planning process for Google and “other bets.”