The previously announced reorganization of Google Inc (NASDAQ:GOOG) (NASDAQ:GOOGL) into a new public holding company called Alphabet has been completed and took effect after the close of business on Friday.
Alphabet shares will trade using GOOG, GOOGL ticker symbols
Google is now a subsidiary of Alphabet. The Class A and Class C shares of Google will be trading as Alphabet Class A, and Class C shares under the same ticker symbols GOOGL and GOOG, respectively on Monday.
The stocks will have the same shareholder rights and still trade on NASDAQ Global Select Market.
Larry Page serves as CEO, Sergey Brin as President and Eric Schmidt as Chairman of Alphabet. The three sit on the executive committee of the public holding company.
Sundar Pichai is the CEO of Google, which will consist of the Android, Search, YouTube, Maps, apps, and advertising businesses of the company.
Alphabet will oversee the operations of other businesses/moonshot projects including Calico, Google Capital, Google Ventures, Google Life Sciences, Google X, Nest Labs, and Sidewalk Labs.
Alphabet code of conduct
Under the Alphabet’s code of conduct, its employees, subsidiaries, and controlled affiliates are required to “do the right thing, follow the law, act honorably, and treat each other with respect.
They should avoid conflict of interest, ensure financial integrity and responsibility. Alphabet’s employees must apply all legal requirements and understand the major laws and regulations that apply to their work. Some of the few specific laws mentioned by the company include trade controls, competition laws, insider trading laws and anti-bribery laws.
Google’s code of conduct, which center on the phrase, “don’t be evil” aligns with Alphabet’s “do the right thing.”
A strong CEO for every Alphabet business
Mr. Page explained in August that the new operating structure was designed to ensure that each of the businesses under Alphabet has a strong CEO and executing well. He and Mr. Brin would help the CEOs as needed.
According to him, they chose Alphabet as the name of the new public holding company because it “means a collection of letters that represent language, one of humanity’s most important innovations and is the core how we index with Google search!”
He added that they were betting on the world alpha, which means “investment return above benchmark.”
Alphabet will start reporting the financial results for Google and its other subsidiaries in January 2016.