May 7, 2008
Google CEO’s heart may be in conflict
Posted May. 7, ’08, 8:26 AM PT by Dan Moren
Category | Business
Eric Schmidt, the CEO of Google, is one of Apple’s most prominent board members, but Arik Hesseldahl of Business Week wonders if the search company head will be able to keep his seat on the board with the increased competition between the two entities, especially when Google’s mobile phone initiative, Android, launches later this year.
While on Apple’s board, [Schmidt] already recuses himself from discussions that pertain to the iPhone, according to published reports. But exactly how effective a director of Apple can he be if he’s not allowed to know proprietary information that pertains to the product that brings in as much as one-third of Apple revenue?
The issue at stake here is conflict of interest: as an Apple director, Schmidt is responsible for making decisions in the best interests of Apple—but as Google CEO, he needs to do the same for them as well. And if Android becomes a serious competitor to the iPhone, then this problem will quickly move to the foreground, and the board may have to consider whether or not Schmidt will be able to remain.
Personally, we love Apple and Google being the bestest of buddies—they seem to get along well and have similar ideologies about designing good products, and Schmidty’s presence on the board is no doubt part of that. We’d be sad to see him go, if that’s what it came to, and for that reason—and that reason alone—we hope Android dies a quick, quiet death. Sorry, GOOG: it’s nothing personal.
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I think we are supposed to welcome Android to the party. Something about competition pushing Apple to be better.