Last Updated:
One day you are the owner of the company you created and the next day you may be shown the door in a board meeting. This has happened many times in the startup world. Even giants like Steve Jobs could not escape this. On the other hand, Google’s founders Larry Page and Sergey Brin are such people that no one can remove them from their own company. Only one thing made the difference – control. This control decides whether the founder will remain on the chair or remain just a name in the history books.
Founder’s control in a company is not just a paper or legal matter. This control decides whether the company will follow its original vision or deviate under external pressure. History is witness to the fact that when the control of the founders weakened, many times they were thrown out of the company they had created. The most famous example of this is Steve Jobs and Apple. When Apple was newly formed, its founder was not given strong protection in its structure. As the influence of outside investors and the board increased, in 1985 Steve Jobs was fired from the company he had created.
Many founders are thrown out of the company they created. But Google’s founders Larry Page and Sergey Brin are such people that no one can forcibly remove them from their company.
Control at Google comes not from work, but from structure. Larry and Sergey may not handle day-to-day operations, but they have control of the company because they created this share system from the beginning.
Add StuffUnknownas
Preferred Source on Google
There are three types of shares in Google – Class A: 1 share = 1 vote, Class C: no voting rights (held by most investors) and Class B: 1 share = 10 votes (held by Larry, Sergey and insiders).
Public investors own most of Google’s shares, yet Larry and Sergey have control over the decisions. If they want, they can also change the CEO.
It is not necessary to be Google to have control. Small startup founders can also retain control by creating shares of different classes. With proper legal advice, complete control is possible even with a small stake.
The model of Larry Page and Sergey Brin teaches us to structure the company thoughtfully. Control can be maintained even without crores of shares or billions of rupees. While starting a startup, definitely think about control, otherwise the company can get out of hand.
