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Eric Schmidt to become technical advisor to Alphabet (abc.xyz)
199 points by EwanToo on Dec 21, 2017 | hide | past | favorite | 63 comments



At the bottom of this thread is a comment by 'AmIFirstToThink' which has been inexplicably marked "dead". It seems to be the only reply as of writing this that makes the connection of Schmidt's stepping down to his strong bets during the 2016 election.

A little-noticed WSJ piece from October would support that idea:

> [Google] Employees donated $1.6 million to her campaign, about 80% more than the amount given by workers at any other corporation, and Executive Chairman Eric Schmidt helped set up companies to analyze political data for the campaign. Mr. Schmidt even wore a badge labeled “STAFF” at Mrs. Clinton’s election-night bash.

> His support of the losing side didn’t go unnoticed among the victors. As President-elect Donald Trump was preparing for a meeting with tech executives at Trump Tower not long before his inauguration, he asked strategist Stephen Bannon whether Mr. Schmidt was “the guy that tried to help Hillary win the election,” according to someone who heard the conversation.

> “Yes,” said Mr. Bannon. “Yes, he is.”

> Google, one of the most powerful players in Washington in recent years, is now facing the consequences of its lost political clout—and is moving mountains to regain it.

https://www.wsj.com/articles/googles-dominance-in-washington...


Schmidt is 62 and worth $13B. Maybe he just decided to do something else.

I'm sure Google has plenty of clout in DC. They have 600+ lobbyists and a huge budget.

https://www.theguardian.com/technology/2017/jul/30/google-si...


There's also this story by Assange outing Schmidt as a government lackey, which I find to be an interesting read.

https://wikileaks.org/google-is-not-what-it-seems/


What do HN people think about a law to prevent corporate executives from giving money to politicians?


You mean overturning Citizens United (https://en.wikipedia.org/wiki/Citizens_United_v._FEC) and McCutcheon (https://en.wikipedia.org/wiki/McCutcheon_v._FEC).

A law that targeted corporate executives would have no chance of surviving the legal precedent of those two cases. It wouldn't do much to solve the problem of dollars having more influence these days than one-person-one-vote in the U.S., but hey, don't let me stop you.

Easy reading about those cases: https://www.publicintegrity.org/2014/04/22/14611/mccutcheon-...


If you care about democracy, you want to make it easier for individual people to spend a lot of money on politics.

As with so many regulations, it mostly benefits the people who have enough resources to work around them:

With strict limits per person, you need a huge established machine that can reach out to many individuals to get your donations rolling. Without limits, you just need to convince one eccentric billionaire. While the latter is still hard, it's still much easier done than the former.


Yes, because we want people with sufficient money to be the only ones with a voice, and we want their voices to massively outweigh the voices of everyone else. That's definitely what someone who cares about democracy would want.


The supposedly money-restricted alternative is not the democratic utopia you paint, but the place where only established machines can compete.


> Alphabet expects that its board will appoint a new, non-executive chairman at its next meeting in January, meaning that it will join the ranks of Apple and Microsoft as major companies with non-executive chairman.

Could someone provide some context around this topic of executive/non-executive chairpersons?

Edit: The above quote is taken from the original link which this HN post pointed to - https://www.cnbc.com/2017/12/21/eric-schmidt-is-stepping-dow...


> Could someone provide some context around this topic of executive/non-executive chairpersons?

An executive chairman is something of a weird beast; they are both chairman of the board and an executive employee involved in managing the firm (as an employee, they usually report to the CEO, but the CEO is accountable to the board, which the chairman, well, chairs.) The exact division of duties between an executive chairman and the CEO is different in every firm using the arrangement, I would expect.

A non-executive chairman is just the head of the board and not involved in day-to-day executive management of the firm, only oversight of management.


Well you can be the chair of the board and CEO so then that's not too weird.


Chair and CEO is less weird than separate executive chairman and CEO. The executive chairman model is more analogous to if, say, the CIO or CFO was also the board chair.


Not great from a governance PoV though


Non-executive means that the person is not an employee of the company.


Yes, I think of an 'executive' as one who executes.

Yes, both meanings...


Its considered best practice for corporate governance - mainly as the independent non exec chairman can hold the CEO to account on behalf of the share holders - this should have happened in the HP scandal a while back.


One of the most interesting debates was between Eric Schmidt and Peter Thiel back in 2012, especially in the positions that Eric staked out:

https://www.youtube.com/watch?v=PsXFwy6gG_4


Wow, Peter Thiel, is annoying, to say the least. He sounds like someone who lives in a bubble that is completely decoupled from the real world. He doesn't even let anyone else make any point.

Am I even allowed to say all these without getting sued or banned?


I watched this video before. He is very annoying but I am mostly agreeing with him.


Interesting enough to be frustratingly incomplete. I wish they had the time to go into more depth rather than debating the meaning of terms.


Bloomberg titles this quite differently:

Alphabet's Schmidt to Step Down From Executive Chairman Role

http://www.sfgate.com/business/article/Alphabet-Google-Eric-...


Makes more sense than the current HN title.


Investors are seeing this as a non-event. He's still going to be around, just a much more limited capacity.

More interesting is who they decide to appoint.


Who they decide to appoint will only be interesting if they appoint somebody interesting, which seems unlikely. Larry Page is still running the show, and moving from an executive chairman to a non-executive chairman will probably only mean that the board has less power than they did before.

Odds are they appoint somebody politically well-connected, and that person then gets to use the "chairman of the board at alphabet" title to lobby various governments in Google's favour, rather than they appoint somebody who is going to do any serious oversight of alphabet's executives.


Interesting. Obama could be a good bet if he would take the job.

(Perhaps the departure was predicated on Obama agreeing in advance)


Honest question: Why would Obama be a good bet? Or is this comment a joke?


I think it's highly unlikely. They need to find somebody whose stature would be increased by becoming the chairman of alphabet in about the same proportion as the prestige Alphabet would gain by having that person as their chair.

Obama as their chairman would be a huge win for Google, but I feel like he probably has better things to do. As a former president, being tied to Google would only hinder him in lobbying goverments for whatever he chooses to lobby for.


Obama could personally call any world leader and talk about taxes, privacy, regulation, etc. with authority.

He would also be generally pragmatic, likable, and qualified.


Objectively speaking, he would generally be considered likable by about 47.9 [1] of the voting public. It wouldn't be unreasonable to assume that the vast majority of employees of either Alphabet or Google would agree with your assessment, and indeed likely most in the tech sector. But I'm not sure any polarizing figure would be a good fit outside of those niches.

[1] https://en.wikipedia.org/wiki/United_States_presidential_app...


47.9% (on average) approval rating by Americans for his job as President (and consequently positions his cabinet, Congress and his party took). It's a barometer of how Americans feel about the USG, too.

If you polled him right now across worldwide audience about his stature, it would probably be north of 70%.


If Google offers job to Obama you may as well short Google.


Schmidt will still be on the board.

IR release: https://abc.xyz/investor/news/releases/2017/1221.html


When he was hired, there was a pact with Larry and Sergey that the three would run the company for 20 years: https://www.reuters.com/article/us-google-executives/top-goo...


Is it just me or does anybody else think that the reason could potentially be a sexual harassment?


Something is fishy which is why they released this info just before the holidays so that the general public forgets about it soon.


There is some amount of gossip floating around: http://www.dailymail.co.uk/news/article-2371719/Googles-Eric...

Not that the Daily Mail is a credible source, but there is a little smoke.


It has got to be more than love rat though. He must have crossed a line somewhere.


Is this related to #metoo?


For anyone wondering: there have been some rumours that Eric Schmidt has been indiscrete in the past, more specifically that he described that he had an “open marriage” and that he had relations with “exotic dancers”.

As far as I can tell, there is no reason to think that his close collaborators at Google didn’t know about and discovered something unsavoury recently. More to the point, there is no reason to think his behaviour (although offensive to some) was ever non-consensual.

It’s entirely understandable that, after more than a decade at the helm of the most incredible companies of all time, he’s stepping down to simply retire.

Given the times, the question bears being asked -- although as far as we can tell, No.


More than rumors. Apparently he had 1 of his many mistresses sign a "confidentiality agreement."[1] This is the kind of stuff Dave Chappelle used to joke about lol, in his "Love Contract" piece[2]. Can't believe someone actually did it - i.e. have the other person sign a confidentiality agreement before a consensual (sometime paid) sexual encounter.

[1] Source: Google CEO and serial womanizer Eric Schmidt spends $15 million on private, no doorman Manhattan penthouse and then has it totally soundproofed => http://www.dailymail.co.uk/news/article-2377785/Google-CEO-s...

[2] “THE CHAPPELLE SHOW” DRAMATIZES SEXUAL CONSENT WITH THE LOVE CONTRACT => https://vimeo.com/183089808


The only thing I can think of is the timing of this announcement is perfect if you don't want any attention drawn to it.

Keep an eye our on the news tomorrow around 4pm EST. You'll see plenty of companies dropping bad news right before the holidays. By the time everyone gets back to work, they've forgotten!


Papa Johns CEO is stepping down as well as of Jan 1 2018


Cool, I always wanted our sexual culture to revert back to the puritan 1600's.


It's not a reversion, it's a continued evolution. As Dworkin noted:

> Empirically speaking, sexual liberation was practiced by women on a wide scale in the sixties and it did not work: that is, it did not free women. Its purpose—it turned out—was to free men to use women without bourgeois constraints, and in that it was successful.

The hippies became Reaganites and women were allowed to participate in the economy to some extent, but that freedom also came with the expectation of sexual availability. You see it even now: suggest that maybe we should prohibit relationships between coworkers, and men flip out. The idea that we might categorically close off some spheres of life to sexual advances, so that women can work in peace and build their careers, induces apoplexy.


Where are you getting this that men flip out of they are prohibited relationships between coworkers?

I was just listening to NPR this morning where the woman speaking was saying that we need to more strongly define expectations for office behavior, but that women as well as men are against the idea of banning office relationships.


Weird though, because school/work is the most common place for couples to meet. Your opinion is another example of ivory-tower syndrome, or living in an ultra-liberal bubble.

Coworkers abstaining has more to do with risk (greater on the men’s side). Elites have always tried controlling sexual freedom and exploration because it threatens their control over literally creating future elite generations.

The sexual revolution absolutely improved women’s prospects from the Eisenhower era. Instead of forced to religious-coupling or pushed into traditional female roles, instead women were able to more freely choose their mate.


Work is at 10% of relationships and rapidly falling: https://arc-anglerfish-washpost-prod-washpost.s3.amazonaws.c.... In a few decades it’s going to be socially unacceptable to hit on coworkers. “If I were looking for a date, I’d be on tinder!”

As to the sexual revolution, read Dworkin’s take on it. Her point that it is a distinctly a man-centric view of sexual freedom is prescient. It’s not just about being free to have sex whenever/with whoever you want, but also freedom to live aspects of your life without dealing with sexual advances. It’s about the freedom to go to work and have coworkers look at you as someone who can help advance their careers, or someone who they can mentor, not a potential date.


Thank you, exactly this.


I think you misread that comment.


His daughter also passed away earlier this year, it could be that he is retiring in relation to that.


It might be related to today's Presidential executive order......


https://www.recode.net/2017/6/13/15788892/alphabet-sharehold...

Larry and Sergey have special voting shares so its their company. In this case how much does the board really matter. Sergey and Larry can do what they want.


Have you looked at Alphabet or other big company board? One thing you will notice is that lot of board members are actually from giant investment funds (3 in case of Google, much worse for companies like Microsoft). Regardless of who owns voting shares, these investors have huge say on how things gets done.

For example, they can threaten to dump their stock or not buy in anymore. Because of small daily volumes relative to market cap even small dumping can have huge price swings in stock. For public companies, their stock is literally a currency. They use it for acquisitions, hiring and so on. These investors can reject motions in board voting and usually always want to tighten screws for short term gains.

Now you should have more understanding on why Google was forced to hire people like Ruth Porat as CFOs and why she can cut down on so many projects for "more business focus" and increase "shareholder value". Owning majority voting shares are not that useful as they were hyped up to be.


Didn't Larry and Sergey always dislike Schmidt and consider him 'adult supervision'? I remember them being quite overt about how happy they were when 'adult supervision is no longer needed' years back


Eric has another 5-6% of votes...


What is he doing as of late? I don't really feel his presence bears too much significance for today's Google..


“In recent years, I’ve been spending a lot of my time on science and technology issues, and philanthropy, and I plan to expand that work.”


good news that he is getting less power


We've updated the link from https://www.cnbc.com/2017/12/21/eric-schmidt-is-stepping-dow..., which points to this.


As it happens, I posted a blog post on some issues about Google, Mozilla, and the debt-based economy:

http://yuhongbao.blogspot.ca/2017/12/google-mozilla-and-debt...

I now have email threads with jrockway and ChuckMcM on this.


Your blog post has an unreadable presentation and looks like blog spam, unfortunately.


I agree that I really should clean my blog up. Creating a blog post is easier than linking to individual tweets. This is the Blogspot default look.


Consider re-writing it as prose, instead?




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