Sergei Brin and Larry page have decided to tighten their grip on Google by initiating a share split. According to them, this was done on the basis of their ” enduring love for Google”. This was dressed up as a share split but is really an effort to ensure their continuing control of the company.
Technically what will happen, is that the share holders will see their $650 shares split in two. Although, the two new shares will not be identical; the new half will not have any voting rights, while the old ones will retain the same rights as before. The two billionaire leaders, Sergei Brin and Larry Page, will then see an increase in their voting power and control of the company.
Chief Legal Officer, David Drummond, had this to say about it: “Given that Larry, Sergey, and Eric control the majority of voting power and support this proposal, we expect it to pass.” Essentially this means something like this is going to happen and there is nothing you can do about it. Not a great soft sell.
Most investors will probably not mind this decision, as Larry and Sergei have an amazing track record and continue to lead the company in a favorable direction. But what will happen if the two leaders start making mistakes or do things that are not in the best interest of the company? There won’t be much that anyone can do.
You can go ahead and try and raise your hand to make a suggestion, as long as it doesn’t influence Larry or Sergei’s decision.