Google Inc (NASDAQ:GOOGL) is facing its biggest test so far in the tech industry as it continues to lose top talent that has forced it reshuffle its upper ranks in the recent years. Once described as the search giant secret weapon CFO, Patrick Pichette, has announced that he plans to retire to follow his bliss and make time for what really matters. CNBC’s, Josh Lipton, reports that financial analysts covering Google remain concerned about a potential brain drain that continues to force top talents to leave the company.
Pichette is calling it quits after nearly seven years with search giant that has seen him defend the company of its audacious spending spree on new projects like Google Glass and the driverless cars.
Google Inc (NASDAQ:GOOGL), which dominates online advertising business and is in the process of diversifying its operations, has experienced a wave of high-profile exits in the recent past awaiting to see if the trend will persist.
“One problem for Google Inc (NASDAQ:GOOGL) is there have been other high profile executives at the search giant also hitting the road lately. Remember there was the unexpected departure last summer of Nikesh Arora, Google’s respected chief business officer. He left to join Softbank and just last month Alan Eustace announced his retirement he was the company senior VP of knowledge,” said Mr. Lipton.
The exit of the experienced top executives is coming at a critical time for Google, which is experiencing uncertainties with its search business as consumers continue to switch from PC to mobile devices where advertisers are paying less. It remains to be seen how CEO, Larry Page, will respond to avert a possible wave of exit, heading into the future. However, analysts are offering a possible solution that Page could use to stop a further exit of top talent.
“He could announce a capital return program that might give Google Inc (NASDAQ:GOOGL) stock a much-needed lift and please its employees. For its part Google says there is no reason to worry about the executive’s departures; the company emphasizes its deep bench of respect for talent. The question now is whether investors agree,” said Mr. Lipton.
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