New Google CEO kick starts major reorganisation

8 Apr 2011

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New Google CEO Larry Page has put his firm stamp on the company by instigating a major restructure that will put a definite focus on social media. Bonuses will rise or fall 25pc in the next year, depending on how successful Google is at social media.

Page returned to the role of CEO on Monday after a 10-year absence. Previous CEO Eric Schmidt becomes chairman.

In a move calculated to create clear lines of accountability and responsibility, Page has made a number of promotions: Andy Rubin is now SVP in charge of mobile, Vic Gundotra is SVP in charge of social, Sundar Pichai is SVP in charge of Chrome, Salar Kamangar is SVP in charge of YouTube and video, Alan Eustac is SVP in charge of search and Susan Wojcicki is SVP in charge of advertising.

The executives will be given the autonomy to make their own decisions within their areas of responsibility.

The move is believed to be inspired by the success of Google’s Android and YouTube divisions, which effectively function as autonomous units within the company and don’t have to run up against complex operations committees to do their jobs.

Google cracks the whip on social strategy

It also emerged that Page issued a memo to all Google employees telling them that their 2011 bonuses will rise or fall by 25pc.

“If we’re successful in reaching our goal of integrating relationships, sharing and identity across our products, your Q4 bonus could be bigger,” Page wrote in a widely reported memo. “If not, your Q4 bonus could be less than target.

“We all have a stake in the success of this effort and this multiplier is designed to reflect that.”

Google’s sales plan bonus is based 75pc on revenue generation and 25pc on individual performance. The new ‘multiplier’ will apply to the individual performance portion (25pc of bonus) of the sales plan and not the revenue portion (75pc of bonus).

Editor John Kennedy is an award-winning technology journalist.

editorial@siliconrepublic.com