Google 2011 Annual Report Download - page 20

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acquisitions, will likely undermine this dual-class structure and our aspirations for
Google over the very long term. We have put our hearts into Google and hope to do
so for many more years to come. So we want to ensure that our corporate structure
can sustain these efforts and our desire to improve the world.
EFFECTIVELY A STOCK SPLIT: AND A NEW CLASS OF STOCK
On April 12, 2012, we announced plans to create a new class of non-voting capital
stock, which will be listed on NASDAQ. These shares will be distributed via a stock
dividend to all existing stockholders: the owner of each existing share will receive
one new share of the non-voting stock, giving investors twice the number of shares
they had before. It’s effectively a two-for-one stock split—something many of our
investors have long asked us for. These non-voting shares will be available for
corporate uses, like equity-based employee compensation, that might otherwise
dilute our governance structure.
We recognize that some people, particularly those who opposed this structure at
the start, won’t support this change—and we understand that other companies have
been very successful with more traditional governance models. But after careful
consideration with our board of directors, we have decided that maintaining this
founder-led approach is in the best interests of Google, our shareholders and our users.
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