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-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) 253-0000

 

April 6, 2007

 

Dear Stockholders:

 

We are pleased to invite you to attend the annual meeting of stockholders of Google Inc. to be held on Thursday, May 10, 2007 at 2:00 p.m., local time, at our corporate headquarters at 1600 Amphitheatre Parkway, Mountain View, California 94043, and we look forward to your attendance either in person or by proxy. For your convenience, we are pleased to offer a live webcast of our annual meeting on the Investor Relations section of our web site at investor.google.com.

 

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 2006 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.

 

Also, please let us know if you plan to attend our annual 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/ Eric Schmidt /s/ Sergey Brin /s/ Larry Page

       


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2007 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 a separate set of proxy materials or Annual Report for 2006?

   3

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

   3

How does the board of directors recommend that I vote?

   4

What shares can I vote?

   4

To 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?

   5

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?

   6

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?

   7

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

   7

Who will serve as inspector of elections?

   7

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

   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?

   7

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

   11

Leadership Development and Compensation Committee

   12

Executive Committee

   13

Real Estate Committee

   13

Acquisition Committee

   14

Chairman of the Board of Directors

   14

Consideration of Director Nominees

   14

Stockholder Recommendations and Nominees

   14

Director Qualifications

   14

Identification and Evaluation of Nominees for Directors

   15

Executive Sessions

   15

Communications with the Board of Directors

   15

Common Stock and Dividends

   15

Headquarters Information

   15

DIRECTOR COMPENSATION

   16

Compensation for 2006

   16

Standard Arrangement

   16


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PROPOSALS TO BE VOTED ON

   17

PROPOSAL NO. 1 Election of Directors

   17

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

   20

PROPOSAL NO. 3 Approval of an Amendment to Google’s 2004 Stock Plan

   21

PROPOSAL NO. 4 Approval of Google’s Executive Bonus Plan

   27

PROPOSAL NO. 5 Stockholder Proposal

   30

COMMON STOCK OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT

   32

Beneficial Ownership Table

   33

SECTION 16(a) BENEFICIAL OWNERSHIP REPORTING COMPLIANCE

   36

CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS

   37

Related Party Transactions Policy and Procedure

   37

EXECUTIVE COMPENSATION

   39

Compensation Discussion and Analysis

   39

Overview

   39

Comparative Framework

   39

Elements of Compensation

   41

Pay Mix

   42

Role of Executives in Determining Compensation

   42

Base Salary

   42

Cash Incentives

   43

Equity Compensation

   44

Timing of Equity Grants

   45

Stock Ownership Guidelines

   45

Post Employment and Change of Control Payments

   45

162(m) Tax Deductibility

   45

Perquisites and Other Benefits

   46

No Additional Executive Benefit Plans

   46

Leadership Development and Compensation Committee Report

   46

2006 Summary Compensation Table

   47

Grants of Plan-Based Awards in 2006

   48

Outstanding Equity Awards at 2006 Fiscal Year-End

   48

Option Exercises and Stock Vested in 2006

   49

Equity Compensation Plan Information

   49

INDEPENDENT PUBLIC ACCOUNTANTS

   51

REPORT OF THE AUDIT COMMITTEE OF THE BOARD OF DIRECTORS

   52

APPENDIX A: GOOGLE 2004 STOCK PLAN

   A-1

APPENDIX B: GOOGLE EXECUTIVE BONUS PLAN

   B-1

 

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NOTICE OF ANNUAL MEETING OF STOCKHOLDERS

 

Time and Date

2:00 p.m., local time, on Thursday, May 10, 2007.

 

Place

Corporate Headquarters, 1600 Amphitheatre Parkway, Mountain View, California 94043. For your convenience, we are pleased to offer a live webcast of our annual meeting on the Investor Relations section of our web site at investor.google.com.

 

Items of Business

(1) To elect ten 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, 2007.

 

 

(3) To approve an amendment to Google’s 2004 Stock Plan to increase the number of authorized shares of Class A common stock issuable thereunder by 4,500,000.

 

 

(4) To approve Google’s Executive Bonus Plan.

 

 

(5) To consider and act upon a stockholder proposal, if properly presented at the meeting.

 

 

(6) 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 22, 2007.

 

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 22, 2007 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 22, 2007, 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.

 

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The annual meeting will begin promptly at 2:00 p.m., local time. Check-in will begin at 12:30 p.m., local time, and you should allow ample time for the check-in procedures.

 

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 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 6, 2007.

 

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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 the solicitation of proxies for use at Google’s 2007 annual meeting of stockholders, which will take place on Thursday, May 10, 2007 at 2:00 p.m. local time, at our corporate headquarters located at 1600 Amphitheatre Parkway, Mountain View, California 94043. For your convenience, we are pleased to offer a live webcast of our annual meeting on the Investor Relations section of our web site at investor.google.com. 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 2006, and certain other required information.

 

Q: How may I obtain a separate set of proxy materials or Annual Report for 2006?

 

A: If you share an address with another stockholder, each stockholder may not receive a separate copy of our Annual Report and proxy materials. Stockholders who do not receive a separate copy of our Annual Report and proxy materials, and want to receive a separate copy, may request to receive a separate copy of, or 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 (1-866-468-4664) or writing to:

 

Investor Relations

Google Inc.

1600 Amphitheatre Parkway

Mountain View, CA 94043

 

Stockholders who share an address and receive multiple copies of our Annual Report and proxy materials can also request to receive a single copy following the instructions above. 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 section of our web site at:

 

http://investor.google.com

 

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 ten directors;

 

   

The ratification of Google’s independent registered public accounting firm for the fiscal year ending December 31, 2007;

 

   

The approval of an amendment to Google’s 2004 Stock Plan to increase the number of authorized shares of Class A common stock issuable thereunder by 4,500,000;

 

   

The approval of Google’s Executive Bonus Plan; and

 

   

A stockholder proposal, if properly presented at the annual meeting.

 

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

 

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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 2007 fiscal year, (3) “FOR” the amendment to our 2004 Stock Plan to increase the number of authorized shares of Class A common stock issuable thereunder by 4.5 million, (4) “FOR” the Executive Bonus Plan and (5) “AGAINST” the stockholder proposal.

 

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 22, 2007, 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 in street name through a broker, trustee or other nominee such as a bank. On the Record Date we had approximately 311,367,047 shares of common stock issued and outstanding, consisting of 230,957,170 shares of Class A common stock and 80,409,877 shares of Class B common stock.

 

Q: To 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 ten 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 as a beneficial owner 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, Computershare 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, trust or by another nominee, like a vast majority of our shareholders, 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 your shares, 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.

 

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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 Record Date or you 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 as a beneficial owner 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 22, 2007, 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 12:30 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 by one of the methods described below. 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 until 1:00 a.m., Central Time, on May 10, 2007. 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 until 1:00 a.m., Central Time, on May 10, 2007. 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. Proxy cards submitted by mail must be received by the time of the meeting in order for your shares to be voted. Google stockholders

 

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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 (1) granting a new proxy bearing a later date (which automatically revokes the earlier proxy) using any of the methods described above (and until the applicable deadline for each method), (2) providing a written notice of revocation to Google’s Corporate Secretary at Google Inc., 1600 Amphitheatre Parkway, Mountain View, CA 94043 prior to your shares being voted, or (3) 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 following the instruction they provided, 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 Class A and Class B 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. If no instructions are indicated, the shares will be voted as recommended by the board of directors.

 

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

 

A: In the election of directors, the ten persons receiving the highest number of affirmative “FOR” votes at the annual meeting will be elected.

 

The affirmative “FOR” vote of a majority of the votes cast on the proposal is required to approve (1) the ratification of the appointment of Ernst & Young LLP as our independent registered public accounting firm, (2) an amendment to our 2004 Stock Plan to increase the number of shares of Class A common stock issuable thereunder the 2004 Stock Plan by 4,500,000, (3) the Executive Bonus Plan, and (4) the stockholder proposal.

 

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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 votes cast 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 are considered votes cast and thus 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 five 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 Schmidt, George Reyes and David Drummond, or any of them, 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 Computershare Trust Company, N.A.

 

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

 

A: Google 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 Inc. to assist us in the distribution of proxy materials and the solicitation of votes described above. We will pay Georgeson Inc. a fee of $4,500 plus customary costs and expenses for these services. Google has agreed to indemnify Georgeson 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, 2007.

 

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.

 

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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 7, 2007. 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) 618-1806

 

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 11, 2008, and

 

   

not later than the close of business on February 11, 2008.

 

If the date of the stockholder meeting in 2008 is moved more than 30 days before or after the anniversary of the 2007 annual meeting, then notice of a stockholder proposal that is not intended to be included in Google’s proxy statement must be received not 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, or

 

 

 

the 10th day following the day on which 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 14.

 

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: A copy of our bylaws is available at http://investor.google.com/bylaws.html. You may also 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 the corporate governance of Google. The Google Code of Conduct and our Corporate Governance Guidelines are 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 and the Corporate Governance Guidelines 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, Sergey Brin and Larry Page, has no relationship which, in the opinion of the board of directors, would interfere with the exercise of independent judgment in carrying out the responsibilities of a director and is an “independent director” as defined in the marketplace rules of The Nasdaq Stock Market. In determining the independence of our directors, the board of directors has adopted independence standards that mirror exactly the criteria specified by applicable laws and regulations of the Securities and Exchange Commission (the “SEC”) and The Nasdaq Stock Market rules. In making the determination of the independence of our directors, the board of directors considered all transactions in which Google and any director had any interest, including those discussed under “Certain Relationships and Related Transactions” below, transactions involving payments made by Google to companies in the ordinary course of business where L. John Doerr, John L. Hennessy, Arthur D. Levinson, Ann Mather, Michael Moritz, Paul S. Otellini or K. Ram Shriram serve on the board of directors or as a member of the executive management of the other company, a transaction in which Google acquired another company where Michael Moritz beneficially owned shares of the capital stock of the other company and transactions involving payments made by Google to educational institutions with which John L. Hennessy and Shirley M. Tilghman are affiliated.

 

Board of Directors Structure and Committee Composition

 

During 2006, our board of directors had 11 directors and the following six standing committees: (1) an Audit Committee, (2) a Nominating and Corporate Governance Committee, (3) a Leadership Development and Compensation Committee, (4) an Executive Committee, (5) a Real Estate Committee and (6) an Acquisition Committee. The committee membership and meetings during 2006 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 are available on our web site at http://investor.google.com/committees.html.

 

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During 2006, the board of directors held six meetings and acted by written consent two times. Each director attended at least 75% of all board of directors and applicable committee meetings. We encourage our directors to attend our annual stockholders’ meetings. Last year, six directors attended Google’s annual stockholders’ meeting.

 

Board of Directors


   Audit Committee

  

Nominating

and Corporate

Governance

Committee


  

Leadership

Development

and Compensation

Committee


  

Executive

Committee


   Real
Estate
Committee


   Acquisition
Committee


Eric Schmidt

                  Chair    Chair    Chair

Sergey Brin

                  Member    Member    Member

Larry Page

                  Member    Member    Member

L. John Doerr

             Member               

John L. Hennessy

        Member                    

Arthur D. Levinson

             Member               

Ann Mather

   Chair                   Member     

Michael Moritz

   Member                         

Paul S. Otellini

             Member               

K. Ram Shriram

   Member                        Member

Shirley M. Tilghman

        Member                    

 

Audit Committee

 

The main function of our Audit Committee, which as been established in accordance with Section 3(a)(58)(A) of the Exchange Act, 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 any earnings announcements and other public announcements regarding our results of operations.

 

   

Reviewing regulatory filings with management and our auditors.

 

   

Preparing any report the Securities and Exchange Commission requires for inclusion in our annual proxy statement.

 

During 2006, the Audit Committee held seven meetings. In January 2006, Paul Otellini resigned from the Audit Committee and was replaced by Ann Mather. Our Audit Committee is currently comprised of Ann Mather, Michael Moritz and K. Ram Shriram, each of whom is a non-employee member of our board of directors. Michael Moritz, who is not seeking reelection to the board of directors, will not be serving on our audit committee after the annual meeting of stockholders in 2007. The board of directors intends to replace Michael Moritz as a member of the Audit Committee by the annual meeting of stockholders in 2007. Our board of directors has determined that each of the directors serving on our audit committee is independent within the meaning of the rules of the Securities and Exchange Commission and the marketplace rules of The Nasdaq Stock Market.

 

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