Google CEO Larry Page is apparently taking inspiration from Warren Buffett as he looks for the best techniques to manage a 55,000-person Internet company.
The company is adjusting to a period of slower revenue growth and increased cost controls, according to a report in the Wall Street Journal. Even though Google is still pouring money into “moonshot” projects such as self-driving cars and balloons that deliver Internet access, it is becoming more caution in its spending. Expenses such as travel and supplies now require more justifications and approvals. Many Google business units must now justify requests for additional headcount by showing how it will lead to increased revenue or users. Page sees an example in Buffett’s method of entrusting his holding company’s assortment of businesses to a variety of CEOs who are awarded capital based on their performance each year.
Page is famously averse to spending time talking to Wall Street or to the press. He agreed to meet with big shareholders is another sign of the shifting attitude at Google. Google stock is up 3.8 percent year-to-date, compared to Facebook’s 15.5 percent rise and Apple’s 13.6 percent rise….
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