DEF 14A 1 ddef14a.htm DEFINITIVE PROXY STATEMENT Definitive Proxy Statement
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SCHEDULE 14A INFORMATION

 

PROXY STATEMENT PURSUANT TO SECTION 14(A) OF

THE SECURITIES EXCHANGE ACT OF 1934

 

Filed by the Registrant  x

 

Filed by a Party other than the Registrant  ¨

 

Check the appropriate box:

 

¨ Preliminary Proxy Statement

 

¨ Confidential, for Use of the Commission Only (as permitted by Rule 14a-6(e)(2))

 

x Definitive Proxy Statement

 

¨ Definitive Additional Materials

 

¨ Soliciting Material Pursuant to §240.14a-11(c) or §240.14a-12

 

GOOGLE INC.


(Name of Registrant as Specified In Its Charter)

 


(Name of Person(s) Filing Proxy Statement, if other than the Registrant)

 

PAYMENT OF FILING FEE (CHECK THE APPROPRIATE BOX):

 

x No fee required.

 

¨ Fee computed on table below per Exchange Act Rules 14a-6(i)(1) and 0-11.

 

  (1) Title of each class of securities to which transaction applies:

 

 
  (2) Aggregate number of securities to which transaction applies:

 

 
  (3) Per unit price or other underlying value of transaction computed pursuant to Exchange Act Rule 0-11 (set forth the amount on which the filing fee is calculated and state how it was determined):

 

 
  (4) Proposed maximum aggregate value of transaction:

 

 
  (5) Total fee paid:

 

 

 

¨ Fee paid previously with preliminary materials.

 

¨ Check box if any part of the fee is offset as provided by Exchange Act Rule 0-11(a)(2) and identify the filing for which the offsetting fee was paid previously. Identify the previous filing by registration statement number, or the Form or Schedule and the date of its filing.

 

  (1) Amount previously paid:

 

 
  (2) Form, Schedule or Registration Statement No.:

 

 
  (3) Filing Party:

 

 
  (4) Date Filed:

 

 


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GOOGLE INC.

1600 AMPHITHEATRE PARKWAY

MOUNTAIN VIEW, CA 94043

(650) 623-4000

 

Dear Stockholders:

 

We are pleased to invite you to attend the annual meeting of stockholders of Google Inc. to be held on Thursday, May 12, 2005 at 2:00 p.m., local time, at our corporate headquarters at 1600 Amphitheatre Parkway, Mountain View, California 94043.

 

Details regarding admission to the meeting and the business to be conducted are described in the accompanying Notice of Annual Meeting and Proxy Statement. Included with the Proxy Statement is a copy of our 2004 Annual Report. We encourage you to read our Annual Report. It includes our audited financial statements and information about our operations, markets and products.

 

Your vote is important. Whether or not you plan to attend the annual meeting, we hope you will vote as soon as possible. You may vote over the Internet, as well as by telephone or by mailing a proxy or voting instruction card. Voting over the Internet, by telephone or by written proxy will ensure your representation at the annual meeting regardless of whether you attend in person. Please review the instructions on the proxy or voting instruction card regarding each of these voting options.

 

Please let us know if you plan to attend the meeting by marking the appropriate box on the enclosed proxy card or, if you vote by telephone or Internet, indicating your plans when prompted.

 

Thank you for your ongoing support of Google. We look forward to seeing you at our annual meeting.

 

Sincerely,

 

 

/s/ Sergey Brin /s/ Larry Page /s/ Eric Schmidt


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2005 ANNUAL MEETING OF STOCKHOLDERS

 

NOTICE OF ANNUAL MEETING AND PROXY STATEMENT

 

TABLE OF CONTENTS

 

NOTICE OF ANNUAL MEETING OF STOCKHOLDERS

   1

QUESTIONS AND ANSWERS ABOUT THE PROXY MATERIALS AND THE ANNUAL MEETING

   3

Why am I receiving these materials?

   3

What information is contained in this proxy statement?

   3

How may I obtain Google’s Annual Report for 2004?

   3

What items of business will be voted on at the annual meeting?

   3

How does the board of directors recommend that I vote?

   3

What shares can I vote?

   4

How many votes am I entitled per share?

   4

What is the difference between holding shares as a stockholder of record and as a beneficial owner?

   4

How can I attend the annual meeting?

   4

How can I vote my shares in person at the annual meeting?

   5

How can I vote my shares without attending the annual meeting?

   5

Can I change my vote?

   5

Is my vote confidential?

   6

How many shares must be present or represented to conduct business at the annual meeting?

   6

How are votes counted?

   6

What is the voting requirement to approve each of the proposals?

   6

Is cumulative voting permitted for the election of directors?

   6

What happens if additional matters are presented at the annual meeting?

   6

Who will serve as inspector of elections?

   7

What should I do if I receive more than one set of voting materials?

   7

How may I obtain a separate set of proxy materials or request a single set for my household?

   7

Who will bear the cost of soliciting votes for the annual meeting?

   7

Where can I find the voting results of the annual meeting?

   7

What is the deadline to propose actions for consideration at next year’s annual meeting of stockholders or to nominate individuals to serve as directors?

   8

CORPORATE GOVERNANCE AND BOARD OF DIRECTORS MATTERS

   9

Board of Directors Independence

   9

Board of Directors Structure and Committee Composition

   9

Audit Committee

   10

Nominating and Corporate Governance Committee

   10

Leadership Development and Compensation Committee

   11

Executive Committee

   12

Chairman of the Board of Directors

   12

Consideration of Director Nominees

   12

Stockholder Recommendations and Nominees

   12

Director Qualifications

   12

Identification and Evaluation of Nominees for Directors

   13

Executive Sessions

   13

Communications with the Board of Directors

   13

Common Stock and Dividends

   13

Headquarters Information

   13

DIRECTOR COMPENSATION

   14


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PROPOSALS TO BE VOTED ON

   15

PROPOSAL NO. 1 Election of Directors

   15

PROPOSAL NO. 2 Ratification of Appointment of Independent Registered Accounting Firm

   18

PROPOSAL NO. 3 Approval of Amendment and Restatement of Google’s 2004 Stock Plan

   19

COMMON STOCK OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT

   26

Beneficial Ownership Table

   26

SECTION 16(a) BENEFICIAL OWNERSHIP REPORTING COMPLIANCE

   28

CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS

   30

EXECUTIVE COMPENSATION

   31

Summary Compensation Table

   31

Stock Option Grants in Last Fiscal Year

   32

Option Exercises in Last Fiscal Year and Fiscal Year-End Option Values

   33

Equity Compensation Plan Information

   34

EMPLOYMENT CONTRACTS, TERMINATION OF EMPLOYMENT AND CHANGE-IN-CONTROL ARRANGEMENTS

   35

REPORT OF THE LEADERSHIP DEVELOPMENT AND COMPENSATION COMMITTEE OF THE BOARD OF DIRECTORS ON EXECUTIVE COMPENSATION

   36

PRINCIPAL ACCOUNTANT FEES AND SERVICES

   38

STOCK PERFORMANCE GRAPH

   39

REPORT OF THE AUDIT COMMITTEE OF THE BOARD OF DIRECTORS

   40

APPENDIX A: GOOGLE AUDIT COMMITTEE CHARTER

   A-1

APPENDIX B: GOOGLE NOMINATING AND CORPORATE GOVERNANCE COMMITTEE CHARTER

   B-1

APPENDIX C: GOOGLE LEADERSHIP DEVELOPMENT AND COMPENSATION COMMITTEE CHARTER

   C-1

APPENDIX D: 2004 STOCK PLAN

   D-1

 

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NOTICE OF ANNUAL MEETING OF STOCKHOLDERS

 

Time and Date

2:00 p.m., local time, on Thursday, May 12, 2005.

 

Place

Corporate Headquarters, 1600 Amphitheatre Parkway, Mountain View, California 94043.

 

Items of Business

(1) To elect nine members of the board of directors to hold office until the next annual meeting of stockholders or until their respective successors have been elected and qualified.

 

 

(2) To ratify the appointment of Ernst & Young LLP as Google’s independent registered public accounting firm for the fiscal year ending December 31, 2005.

 

 

(3) To approve an amendment to Google’s 2004 Stock Plan to, among other things, increase the number of authorized shares of Class A common stock issuable under the 2004 Stock Plan from 6,431,660 to 13,431,660 and to provide Google with the ability to grant certain performance based awards that are fully deductible for federal income tax purposes.

 

 

(4) To consider such other business as may properly come before the meeting.

 

Adjournments and Postponements

Any action on the items of business described above may be considered at the annual meeting at the time and on the date specified above or at any time and date to which the annual meeting may be properly adjourned or postponed.

 

Record Date

You are entitled to vote only if you were a Google stockholder as of the close of business on March 28, 2005.

 

Meeting Admission

You are entitled to attend the annual meeting only if you were a Google stockholder as of the close of business on March 28, 2005 or hold a valid proxy for the annual meeting. Since seating is limited, admission to the meeting will be on a first-come, first-served basis. You should be prepared to present photo identification for admittance. If you are not a stockholder of record but hold shares through a broker, trustee or nominee (i.e., in street name), you should provide proof of beneficial ownership as of the record date, such as your most recent account statement prior to March 28, 2005, a copy of the voting instruction card provided by your broker, trustee or nominee, or similar evidence of ownership. If you do not provide photo identification or comply with the other procedures outlined above, you will not be admitted to the annual meeting. For security reasons, you will be subject to search prior to your admittance to the meeting.

 

 

Please let us know if you plan to attend the meeting by marking the appropriate box on the enclosed proxy card or, if you vote by telephone or Internet, indicating your plans when prompted.

 

 

The annual meeting will begin promptly at 2:00 p.m., local time. Check-in will begin at 12:00 p.m., local time, and you should allow ample time for the check-in procedures.

 

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Voting

Your vote is very important. Whether or not you plan to attend the annual meeting, we encourage you to read this proxy statement and submit your proxy or voting instructions as soon as possible. You may submit your proxy or voting instructions for the annual meeting by completing, signing, dating and returning your proxy or voting instruction card in the pre-addressed envelope provided, or, in most cases, by using the telephone or the Internet. For specific instructions on how to vote your shares, please refer to the section entitled Questions and Answers beginning on page 3 of this proxy statement and the instructions on the proxy or voting instruction card.

 

By order of the Board of Directors,

 

Eric Schmidt

Chairman of the Executive Committee,

Chief Executive Officer and Director

 

This notice of annual meeting and proxy statement and form of proxy are being distributed on or about April 8, 2005.

 

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QUESTIONS AND ANSWERS ABOUT THE PROXY MATERIALS AND THE ANNUAL MEETING

 

Q: Why am I receiving these materials?

 

A: Our board of directors is providing these proxy materials to you in connection with Google’s annual meeting of stockholders, which will take place on Thursday, May 12, 2005 at 2:00 p.m. local time at our corporate headquarters located at 1600 Amphitheatre Parkway, Mountain View, California 94043. As a stockholder, you are invited to attend the annual meeting and are requested to vote on the items of business described in this proxy statement.

 

Q: What information is contained in this proxy statement?

 

A: The information in this proxy statement relates to the proposals to be voted on at the annual meeting, the voting process, the compensation of our directors and most highly paid executive officers in 2004, and certain other required information.

 

Q: How may I obtain Google’s Annual Report for 2004?

 

A: A copy of our Annual Report for 2004 is enclosed.

 

Stockholders may request another free copy of our Annual Report for 2004 from:

 

Investor Relations

Google Inc.

1600 Amphitheatre Parkway

Mountain View, CA 94043

 

Current and prospective investors can also access or order free copies of our Form 10-K, proxy statement and other financial information on our Investor Relations web site at:

 

http://investor.google.com

 

Alternatively, you can request copies of such information by emailing investors@google.com or calling 1-866-INV-GOOG (866-468-4664).

 

Q: What items of business will be voted on at the annual meeting?

 

A: The items of business scheduled to be voted on at the annual meeting are:

 

    The election of nine directors;

 

    The ratification of Google’s independent registered public accounting firm for the fiscal year ending December 31, 2005; and

 

    The approval of an amendment to Google’s 2004 Stock Plan to, among other things, increase the number of authorized shares of Class A common stock issuable under the 2004 Stock Plan from 6,431,660 to 13,431,660 and to provide Google with the ability to grant certain performance based awards that are fully deductible for federal income tax purposes.

 

We will also consider any other business that properly comes before the annual meeting.

 

Q: How does the board of directors recommend that I vote?

 

A: Our board of directors recommends that you vote your shares (1) “FOR” each of the nominees to the board of directors (2) “FOR” the ratification of our independent registered public accounting firm for the 2005

 

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fiscal year and (3) “FOR” the amendment to our 2004 Stock Plan to, among other things, increase the number of authorized shares of Class A common stock issuable under the 2004 Stock Plan from 6,431,660 to 13,431,660 and to provide Google with the ability to grant certain performance based awards that are fully deductible for federal income tax purposes.

 

Q: What shares can I vote?

 

A: Each share of Google Class A common stock and Class B common stock issued and outstanding as of the close of business on March 28, 2005, which we refer to as the Record Date, is entitled to be voted on all items being voted on at the annual meeting. You may vote all shares owned by you as of the Record Date, including (1) shares held directly in your name as the stockholder of record and (2) shares held for you as the beneficial owner through a broker, trustee or other nominee such as a bank. On the Record Date we had approximately 277,282,937 shares of common stock issued and outstanding consisting of 162,550,115 shares of Class A common stock and 114,732,822 shares of Class B common stock.

 

Q: How many votes am I entitled per share?

 

A: Each holder of shares of Class A common stock is entitled to one vote for each share of Class A common stock held as of the Record Date, and each holder of shares of Class B common stock is entitled to 10 votes for each share of Class B common stock held as of the Record Date. The Class A common stock and Class B common stock are voting as a single class on all matters described in these proxy materials for which your vote is being solicited.

 

Q: What is the difference between holding shares as a stockholder of record and as a beneficial owner?

 

A: Most Google stockholders hold their shares through a broker or other nominee rather than directly in their own name. As summarized below, there are some distinctions between shares held of record and those owned beneficially.

 

Stockholder of Record

 

If your shares are registered directly in your name with our transfer agent, EquiServe Trust Company, N.A., you are considered, with respect to those shares, the stockholder of record, and these proxy materials are being sent directly to you by Google. As the stockholder of record, you have the right to grant your voting proxy directly to Google or to vote in person at the annual meeting. Google has enclosed or sent a proxy card for you to use.

 

Beneficial Owner

 

If your shares are held in a brokerage account or by another nominee, you are considered the beneficial owner of shares held in street name, and these proxy materials are being forwarded to you together with a voting instruction card by your broker, trustee or nominee, as the case may be. As the beneficial owner, you have the right to direct your broker, trustee or nominee how to vote, and you are also invited to attend the annual meeting.

 

Since a beneficial owner is not the stockholder of record, you may not vote your shares in person at the annual meeting unless you obtain a “legal proxy” from the broker, trustee or nominee that holds your shares, giving you the right to vote the shares at the meeting. Your broker, trustee or nominee has enclosed or provided voting instructions for you to use in directing the broker, trustee or other nominee how to vote your shares.

 

Q: How can I attend the annual meeting?

 

A: You are entitled to attend the annual meeting only if you were a Google stockholder or joint holder as of the close of business on March 28, 2005 or you hold a valid proxy for the annual meeting. Since seating is

 

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limited, admission to the meeting will be on a first-come, first-served basis. You should be prepared to present photo identification for admittance. If you are not a stockholder of record but hold shares through a broker or nominee (i.e., in street name), you should provide proof of beneficial ownership as of the Record Date, such as your most recent account statement prior to March 28, 2005, a copy of the voting instruction card provided by your broker, trustee or nominee, or other similar evidence of ownership. If you do not provide photo identification or comply with the other procedures outlined above, you will not be admitted to the annual meeting. For security reasons, you will be subject to search prior to your admittance to the meeting.

 

Please let us know if you plan to attend the meeting by marking the appropriate box on the enclosed proxy card or, if you vote by telephone or Internet, indicating your plans when prompted.

 

The meeting will begin promptly at 2:00 p.m., local time. Check-in will begin at 12:00 p.m. local time, and you should allow ample time for the check-in procedures.

 

Q: How can I vote my shares in person at the annual meeting?

 

A: Shares held in your name as the stockholder of record may be voted by you in person at the annual meeting. Shares held beneficially in street name may be voted by you in person at the annual meeting only if you obtain a legal proxy from the broker, trustee or nominee that holds your shares giving you the right to vote the shares. Even if you plan to attend the annual meeting, we recommend that you also submit your proxy or voting instructions as described below so that your vote will be counted if you later decide not to attend the meeting.

 

Q: How can I vote my shares without attending the annual meeting?

 

A: Whether you hold shares directly as the stockholder of record or beneficially in street name, you may direct how your shares are voted without attending the annual meeting. If you are a stockholder of record, you may vote by submitting a proxy. If you hold shares beneficially in street name, you may vote by submitting voting instructions to your broker, trustee or nominee. For directions on how to vote, please refer to the instructions below and those included on your proxy card or, for shares held beneficially in street name, the voting instruction card provided by your broker, trustee or nominee.

 

By Internet—Stockholders of record of Google common stock with Internet access may submit proxies by following the “Vote by Internet” instructions on their proxy cards. Most Google stockholders who hold shares beneficially in street name may vote by accessing the web site specified on the voting instruction cards provided by their brokers, trustees or nominees. Please check the voting instruction card for Internet voting availability.

 

By Telephone—Stockholders of record of Google common stock who live in the United States or Canada may submit proxies by following the “Vote by Phone” instructions on their proxy cards. Most Google stockholders who hold shares beneficially in street name and live in the United States or Canada may vote by phone by calling the number specified on the voting instruction cards provided by their brokers, trustees or nominees. Please check the voting instruction card for telephone voting availability.

 

By Mail—Stockholders of record of Google common stock may submit proxies by completing, signing and dating their proxy cards and mailing them in the accompanying pre-addressed envelopes. Google stockholders who hold shares beneficially in street name may vote by mail by completing, signing and dating the voting instruction cards provided by their brokers, trustees or nominees and mailing them in the accompanying pre-addressed envelopes.

 

Q: Can I change my vote?

 

A: You may change your vote at any time prior to the vote at the annual meeting. If you are the stockholder of record, you may change your vote by granting a new proxy bearing a later date (which automatically revokes

 

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the earlier proxy), by providing a written notice of revocation to Google’s Corporate Secretary prior to your shares being voted, or by attending the annual meeting and voting in person. Attendance at the meeting will not cause your previously granted proxy to be revoked unless you specifically so request. For shares you hold beneficially in street name, you may change your vote by submitting new voting instructions to your broker, trustee or nominee, or, if you have obtained a legal proxy from your broker or nominee giving you the right to vote your shares, by attending the meeting and voting in person.

 

Q: Is my vote confidential?

 

A: Proxy instructions, ballots and voting tabulations that identify individual stockholders are handled in a manner that protects your voting privacy. Your vote will not be disclosed either within Google or to third parties, except: (1) as necessary to meet applicable legal requirements, (2) to allow for the tabulation of votes and certification of the vote, and (3) to facilitate a successful proxy solicitation. Occasionally, stockholders provide on their proxy card written comments, which are then forwarded to Google management.

 

Q: How many shares must be present or represented to conduct business at the annual meeting?

 

A: The quorum requirement for holding the annual meeting and transacting business is that holders of a majority of the voting power of the issued and outstanding common stock of Google must be present in person or represented by proxy. Both abstentions and broker non-votes (described below) are counted for the purpose of determining the presence of a quorum.

 

Q: How are votes counted?

 

A: In the election of directors, you may vote “FOR” all or some of the nominees or your vote may be “WITHHELD” with respect to one or more of the nominees. You may not cumulate your votes for the election of directors.

 

For the other items of business, you may vote “FOR,” “AGAINST” or “ABSTAIN.” If you elect to “ABSTAIN,” the abstention has the same effect as a vote “AGAINST.” If you provide specific instructions with regard to certain items, your shares will be voted as you instruct on such items.

 

Q: What is the voting requirement to approve each of the proposals?

 

A: In the election of directors, the nine persons receiving the highest number of “FOR” votes at the annual meeting will be elected. All other proposals require the affirmative “FOR” vote of a majority of those shares present in person or represented by proxy and entitled to vote on those proposals at the annual meeting. If you hold shares beneficially in street name and do not provide your broker with voting instructions, your shares may constitute “broker non-votes.” Generally, broker non-votes occur on a matter when a broker is not permitted to vote on that matter without instructions from the beneficial owner and instructions are not given. In tabulating the voting result for any particular proposal, shares that constitute broker non-votes are not considered entitled to vote on that proposal. Thus, broker non-votes will not affect the outcome of any matter being voted on at the meeting, assuming that a quorum is obtained. Abstentions have the same effect as votes against the matter.

 

Q: Is cumulative voting permitted for the election of directors?

 

A: No. You may not cumulate your votes for the election of directors.

 

Q: What happens if additional matters are presented at the annual meeting?

 

A: Other than the three items of business described in this proxy statement, we are not aware of any other business to be acted upon at the annual meeting. If you grant a proxy, the persons named as proxy holders, Eric

 

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Schmidt and George Reyes, will have the discretion to vote your shares on any additional matters properly presented for a vote at the meeting. If for any reason any of our nominees is not available as a candidate for director, the persons named as proxy holders will vote your proxy for such other candidate or candidates as may be nominated by the board of directors.

 

Q: Who will serve as inspector of elections?

 

A: The inspector of elections will be a representative from EquiServe.

 

Q: What should I do if I receive more than one set of voting materials?

 

A: You may receive more than one set of voting materials, including multiple copies of this proxy statement and multiple proxy cards or voting instruction cards. For example, if you hold your shares in more than one brokerage account, you may receive a separate voting instruction card for each brokerage account in which you hold shares. If you are a stockholder of record and your shares are registered in more than one name, you will receive more than one proxy card. Please complete, sign, date and return each Google proxy card and voting instruction card that you receive.

 

Q: How may I obtain a separate set of proxy materials or request a single set for my household?

 

A: If you share an address with another stockholder, each stockholder will receive a copy of our Annual Report and proxy materials. Stockholders may request additional copies of our Annual Report and proxy materials by sending an e-mail to investors@google.com, calling 1-866-INV-GOOG (866-468-4664) or writing to:

 

Investor Relations

Google Inc.

1600 Amphitheatre Parkway

Mountain View, CA 94043

 

Similarly, if you share an address with another stockholder, you may write us at the address above to request delivery of a single copy of these materials in the future.

 

Q: Who will bear the cost of soliciting votes for the annual meeting?

 

A: Google is making this solicitation and will pay the entire cost of preparing, assembling, printing, mailing and distributing these proxy materials and soliciting votes. If you choose to access the proxy materials and/or vote over the Internet, you are responsible for Internet access charges you may incur. If you choose to vote by telephone, you are responsible for telephone charges you may incur. In addition to the mailing of these proxy materials, the solicitation of proxies or votes may be made in person, by telephone or by electronic communication by our directors, officers and employees, who will not receive any additional compensation for such solicitation activities. We also have hired Georgeson Shareholder Communications Inc. to assist us in the distribution of proxy materials and the solicitation of votes described above. We will pay Georgeson Shareholder Communications Inc. a fee of $3,500 plus customary costs and expenses for these services. Google has agreed to indemnify Georgeson Shareholder Communications Inc. against certain liabilities arising out of or in connection with its agreement.

 

Q: Where can I find the voting results of the annual meeting?

 

A: We intend to announce preliminary voting results at the annual meeting and publish final results in our quarterly report on Form 10-Q for the second quarter ending June 30, 2005.

 

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Q: What is the deadline to propose actions for consideration at next year’s annual meeting of stockholders or to nominate individuals to serve as directors?

 

A: You may submit proposals, including director nominations, for consideration at future stockholder meetings.

 

Stockholder Proposals: For a stockholder proposal to be considered for inclusion in our proxy statement for the annual meeting next year, the Corporate Secretary of Google must receive the written proposal at our principal executive offices no later than December 9, 2005. Such proposals also must comply with Securities and Exchange Commission regulations under Rule 14a-8 regarding the inclusion of stockholder proposals in company-sponsored proxy materials. Proposals should be addressed to:

 

Google Inc.

Attn: Corporate Secretary

1600 Amphitheatre Parkway

Mountain View, California 94043

Fax: (650) 618-1499

 

For a stockholder proposal that is not intended to be included in Google’s proxy statement under Rule 14a-8, the stockholder must (1) deliver a proxy statement and form of proxy to holders of a sufficient number of shares of Google common stock to approve that proposal, (2) provide the information required by our bylaws and (3) give timely notice to the Corporate Secretary of Google in accordance with our bylaws, which, in general, require that the notice be received by the Corporate Secretary of Google:

 

    not earlier than the close of business on January 12, 2006, and

 

    not later than the close of business on February 13, 2006.

 

If the date of the stockholder meeting in 2006 is moved more than 30 days before or after the anniversary of the 2005 annual meeting, then notice of a stockholder proposal that is not intended to be included in Google’s proxy statement must be received no earlier than the close of business 120 days prior to the meeting and no later than the close of business on the earlier of the following two dates:

 

    the 10th day following the day on which notice of the meeting date is mailed; and

 

    the 10th day following public disclosure of the meeting is made.

 

Nomination of Director Candidates: You may propose director candidates for consideration by the board of directors’ Nominating and Corporate Governance Committee. Any such recommendations should include the nominee’s name and qualifications for board of directors membership and should be directed to the Corporate Secretary of Google at the address of our principal executive offices set forth above. For additional information regarding stockholder recommendations for director candidates, see “Consideration of Director Nominees—Stockholder Recommendations and Nominees” on page 12.

 

In addition, our bylaws permit stockholders to nominate directors for election at an annual stockholder meeting. To nominate a director, the stockholder must provide the information required by our bylaws. In addition, the stockholder must give timely notice to our Corporate Secretary in accordance with our bylaws, which, in general, require that the notice be received by our Corporate Secretary within the time period described above under “Stockholder Proposals” for stockholder proposals that are not intended to be included in our proxy statement.

 

Copy of Bylaw Provisions: You may contact our Corporate Secretary at our principal executive offices for a copy of the relevant bylaw provisions regarding the requirements for making stockholder proposals and nominating director candidates.

 

* * * * *

 

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CORPORATE GOVERNANCE AND BOARD OF DIRECTORS MATTERS

 

We are committed to maintaining the highest standards of business conduct and corporate governance, which we believe are essential to running our business efficiently, serving our stockholders well and maintaining our integrity in the marketplace. We have adopted a code of business conduct and ethics for directors, officers (including our principal executive officer and principal financial officer) and employees, known as the Google Code of Conduct. We have also adopted Corporate Governance Guidelines, which, in conjunction with our certificate of incorporation, bylaws and board of directors committee charters form the framework for governance of Google. The Google Code of Conduct is available at: http://investor.google.com. Google will post on this web site any amendments to the Google Code of Conduct or waivers of the Google Code of Conduct for directors and executive officers.

 

Stockholders may request free printed copies of the Google Code of Conduct from:

 

Investor Relations

Google Inc.

1600 Amphitheatre Parkway

Mountain View, CA 94043

investors@google.com

 

Board of Directors Independence

 

The board of directors has determined that each of the director nominees standing for election, except Eric Schmidt, Larry Page and Sergey Brin, has no material relationship with Google (either directly or as a partner, shareholder or officer of an organization that has a relationship with Google) and is an “independent director” as defined in the listing standards of The Nasdaq Stock Market, as currently in effect.

 

Board of Directors Structure and Committee Composition

 

As of the date of this proxy statement, our board of directors has nine directors and the following four committees: (1) Audit Committee, (2) Leadership Development and Compensation Committee, (3) Nominating and Corporate Governance Committee and (4) Executive Committee. The committee membership and meetings during 2004 and the function of each of the committees are described below. Each of the committees operates under a written charter adopted by the board of directors. All of the committee charters, except the Executive Committee’s charter, are available on our web site at http://investor.google.com/committees.html.

 

During 2004, the board of directors held 15 meetings. Each director attended at least 75% of all board of directors and applicable committee meetings. We encourage our directors to attend our annual meetings. We did not hold an annual meeting in 2004.

 

Board of Directors
Member


   Audit Committee

   Nominating
and Corporate
Governance
Committee


   Leadership
Development
and Compensation
Committee


   Executive
Committee


Eric Schmidt

                  Chair

Larry Page

                  Member

Sergey Brin

                  Member

L. John Doerr

        Member    Member     

John L. Hennessy

        Member          

Arthur D. Levinson

             Member     

Michael Moritz

   Member               

Paul S. Otellini

   Member               

K. Ram Shriram

   Chair               

 

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Audit Committee

 

Our Audit Committee’s main function is to oversee our accounting and financial reporting processes, internal systems of control, independent auditor relationships and the audits of our financial statements. This committee’s responsibilities include:

 

    Selecting and hiring our independent auditors.

 

    Evaluating the qualifications, independence and performance of our independent auditors.

 

    Approving the audit and non-audit services to be performed by our independent auditors.

 

    Reviewing the design, implementation, adequacy and effectiveness of our internal controls and our critical accounting policies.

 

    Overseeing and monitoring the integrity of our financial statements and our compliance with legal and regulatory requirements as they relate to financial statements or accounting matters.

 

    Reviewing with management and our auditors any earnings announcements and other public announcements regarding our results of operations.

 

    Preparing the report that the Securities and Exchange Commission, or SEC, requires in our annual proxy statement.

 

During 2004, the Audit Committee held three meetings. Our Audit Committee is comprised of Ram, Paul and Michael, each of whom is a non-employee member of our board of directors. Our board of directors of Directors has determined that each of the directors serving on our audit committee is independent within the meaning of the rules of the SEC and the listing standards of The Nasdaq Stock Market.

 

The board of directors has determined that Paul is an audit committee financial expert as defined under the rules of the SEC. Paul’s relevant experience includes services as the President and Chief Operating Officer of Intel and various positions at Intel, including Executive Vice President and General Manager of Intel Architecture Group and Executive Vice President and General Manager of Sales and Marketing Group. Paul holds a Master’s degree from the University of California at Berkeley and Bachelor’s degree in economics from the University of San Francisco.

 

The report of the Audit Committee is included herein on page 40. The charter of the Audit Committee is available at http://investor.google.com/committee_audit.html and is also included herein as Appendix A. A free printed copy is available to any stockholder who requests it from the address on page 3.

 

Nominating and Corporate Governance Committee

 

Our Nominating and Corporate Governance Committee’s purpose is to assist our board of directors in identifying individuals qualified to become members of our board of directors consistent with criteria set by our board of directors and to develop our corporate governance principles. This committee’s responsibilities include:

 

    Evaluating the composition, size and governance of our board of directors and its committees and make recommendations regarding future planning and the appointment of directors to our committees.

 

    Establishing a policy for considering stockholder nominees for election to our board of directors.

 

    Recommending ways to enhance communications and relations with our stockholders.

 

    Evaluating and recommending candidates for election to our board of directors.

 

    Overseeing our board of directors performance and self-evaluation process and developing continuing education programs for our directors.

 

    Develop and recommend to the board of directors corporate governance principles applicable to Google.

 

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During 2004, the Nominating and Corporate Governance Committee held one meeting. Our Nominating and Corporate Governance Committee consists of John Doerr and John Hennessy, each of whom is a non-employee member of our board of directors. Our board of directors has determined that each of the directors serving on our Nominating and Corporate Governance Committee is independent as defined in the listing standards of The Nasdaq Stock Market.

 

The charter of the Nominating and Corporate Governance Committee is available at http://investor.google.com/committee_nominating.html and is also included herein as Appendix B. A free printed copy is available to any stockholder who requests it from the address on page 3.

 

Leadership Development and Compensation Committee

 

Our Leadership Development and Compensation Committee’s purpose is to assist our board of directors in determining the development plans and compensation of our senior management, directors and employees and recommend these plans to our board of directors. This committee’s responsibilities include:

 

    Reviewing the employee wide compensation philosophy.

 

    Reviewing the budget and structure of our employee wide variable cash compensation plans.

 

    Reviewing the budget and structure of our employee wide equity based compensation plans.

 

    Periodically reviewing our leadership development plans.

 

    Reviewing and recommending compensation and benefit plans for our executive officers and directors

 

    Administering our stock plans.

 

    Reviewing the terms of offer letters and employment agreements and arrangements with our executive officers.

 

    Setting performance goals for our executive officers and reviewing their performance against these goals.

 

    Periodically reviewing executive succession plans and executive education and development plans.

 

    Evaluating the competitiveness of our executive compensation plans.

 

    Preparing the report that the Securities and Exchange Commission requires in our annual proxy statement.

 

During 2004, the Leadership Development and Compensation Committee held five meetings. Our Leadership Development and Compensation Committee consists of John Doerr and Art, each of whom is a non-employee member of our board of directors. Our Leadership Development and Compensation Committee does not have a chairman. Each member of our Leadership Development and Compensation Committee is an “outside” director as defined in 162(m) of the Internal Revenue Code of 1986, as amended, and a “non-employee” director within the meaning of Rule 16b 3 of the rules under the Securities Exchange Act of 1934. Our board of directors has determined that each of the directors serving on our Leadership Development and Compensation Committee is independent as defined in the listing standards of The Nasdaq Stock Market.

 

None of the members of the Leadership Development and Compensation Committee has been an officer or employee of Google. None of our executive officers serves on the board of directors or compensation committee of a company that has an executive officer that serves on our board of directors or the Leadership Development and Compensation Committee.

 

The charter of the Leadership Development and Compensation Committee is available at http://investor.google.com/committee_leadership.html and is also included herein as Appendix C. A free printed copy is available to any stockholder who requests it from the address on page 3.

 

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Executive Committee

 

The Executive Committee, for which the board of directors adopted a formal charter in fiscal 2004, serves as an administrative committee of the board of directors to act