Larry Page and Sergey Brin just got a US$2.3bil retirement gift from investors.

The Google co-founders, who announced on Dec 3 they were stepping down from day-to-day management of parent Alphabet Inc, added more than US$1bil each to their net worth today as the firm’s shares rose 1.9% in New York.

They each own about 6% of the Internet giant and still control Alphabet through special voting shares.

The gains come as investors welcome Sundar Pichai’s elevation to chief executive officer of Alphabet, replacing Page in the role. It means the three most valuable US tech firms no longer have a founder at the helm.

Like Apple Inc’s Tim Cook and Microsoft Corp’s Satya Nadella, Pichai is a long-time lieutenant who steadily worked his way up the corporate ladder. More than 15 years after he joined the Mountain View-based company he’s replacing Page in the top job. Brin is stepping down as president, leaving Pichai as undisputed leader.

The shift reflects Google’s accession into corporate middle age. Started in a California garage by Brin and Page in 1998, the firm had revenue of US$137bil in 2018 and today boasts a market value of $893 billion. That’s behind only Apple and Microsoft on the S&P 500 Index.

Founder free

Other Silicon Valley giants are also founder free. Larry Ellison’s Oracle Corp is headed by Safra Catz, though Ellison is still involved as the company’s chairman. Some younger companies - such as Uber Technologies Inc and We Co - have turned to outsiders amid turmoil.

There are some notable exceptions. Jeff Bezos and Mark Zuckerberg are still at the helm of Amazon.com Inc and Facebook Inc respectively, which are the fourth- and fifth-largest US companies by market value.

Such a transition has proved to be a boon for Apple and Microsoft. The iPhone maker’s shares have risen by more than 400% since Cook took the helm in August 2011 and Microsoft has quadrupled on Nadella’s watch.

Since 2015, Pichai has served as CEO of Google, by far the company’s biggest division. During his time in that job, Alphabet’s shares doubled in price even as the company wrestled with increased scrutiny from regulators and lawmakers.

Unusual position

Their success has placed the trio among America’s richest executives. Each are worth hundreds of millions of dollars thanks to stock awards they’ve received.

Pichai, 47, is in an unusual position for a top executive. Unlike Cook and Nadella, who stand fourth and sixth on Bloomberg’s executive pay ranking, almost all of Pichai’s stock awards have vested, filings show.

By contrast, Cook, 59, still has as many as 1.8 million restricted stock units worth about US$500mil set to vest through August 2021, according to a recent filing. Nadella, 52, could earn as many as 1.8 million Microsoft shares through a long-term performance-based stock award that is currently worth about US$275mil .

The Alphabet board will likely move to rectify this discrepancy. But however they decide to compensate Pichai, he’ll still lag far behind the wealth accrued by Brin and Page. The pair have a combined net worth of about US$126bil , according to the Bloomberg Billionaires Index.

 - Bloomberg