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Google Inc. (NASDAQ:GOOG)

2013 Annual Meeting of Stockholders Conference Transcript

June 6, 2013 5:00 PM ET

Executives

Eric Schmidt - Executive Chairman

John Doerr - Independent Director

John Hennessy - Lead Independent Director

Ram Shriram - Independent Director

Kent Walker - Independent Director

David Drummond - SVP, Corporate Development, Chief Legal Officer, Secretary

Larry Page - Chief Executive Officer

Deborah Kelley - Computershare, Inspector of Election

Barbara Machin - Ernst & Young

Meredith Benton - Pax World Mutual Funds

Jacob Parent - Public Citizen the Consumer Advocacy Group

Isaac Wallace - Laborers’ District Council and Contractors’ Pension Fund

Johanna Wright - VP, Mobile Search and Assist

Sergey Brin - Director

Diane Greene - Independent Director

Paul Otellini - Independent Director

Shirley Tilghman - Independent Director

Analysts

Operator

Ladies and gentlemen, please welcome Executive Chairman of Google, Dr. Eric Schmidt.

Eric Schmidt

Well, good afternoon. It’s great to be back to the Annual Shareholder Meeting. I hope we’re going to have a very good hour, hour 15 or so here. Let me ask first, who all was here at our first shareholder meeting? Welcome back. Let’s have around of applause for the people who have been here forever. By the way, you guys were there too. You didn’t raise your hands. Right, the peanut guy here, was here the whole time, right.

Anyway, so welcome to our meeting. I hope you guys enjoyed the lunch and the demos outside. If you don’t get a chance, I think the demos they are going to be there for awhile. I hope everyone has registered, if you are not registered, please register, so we should have record that you were here.

And everybody here has a copy of the agenda, they were on your chairs, so if you don’t have them I’m sure we can get you one, if you didn’t find it. And on the back of the agenda is the rules for the meeting and that’s how we are going to conduct the meeting. I’m going to call the meeting to order.

I want to start by introducing. We have some non-executive Directors of the company here in attendance. For example, we have John Doerr, I think everybody knows John, he is right here. We have John Hennessy, right here and we have Ram Shriram, and we have a couple of other Google executives who we’ll introduce shortly.

And we have some other members of Google management, I saw Kent Walker here, David Drummond you will see in a bit, and of course, Larry is here and a few others as you’ll see as we come along.

We also have [Deborah Kelley]. She is a representative of Computershare, where is Deborah, there she is. Hi Deborah. We see you every year. Don’t we? Right. Same please, same location, right.

Deborah Kelley

Yeah.

Eric Schmidt

And she serves as our Inspector of Election, so be careful and count correctly. And Barbara Machin, Alice and Sam, is it [Lesrockes], Sam, where are you guys. There they are. Raise your hands, right over here, in opposite corners. And they are from Ernst & Young who are our independent accounts and they do a great job for us and you can talk to them right all of that.

I’d like to start, let’s go ahead and proceed with our legal required part of this meeting and David, do you want to get started. This is David Drummond. David is one of my very close friends and somebody who has driven our strategies, our M&A strategies, our legal strategies and pretty much everything interesting in conflict and governments forever. David?

David Drummond

Right. Thanks Eric.

Eric Schmidt

Thank you.

David Drummond

Well, welcome everybody to another annual meeting. I always look forward to this days because I can walk around the campus in tie without being looked out like I’m out of my mind. So we are really glad to see all of you here.

So quick few notes and then we’ll get into the agenda. Logistically, the rules and procedure that are governing us today, stockholders shouldn’t address the meeting until you recognized. We’ll provide a Q&A period at the end, so you can your questions when we finished all of the formal business.

Now if you want to ask a question during the Q&A period, please move over to one of the microphones then you see those in the isles. We’ll recognize you, identify yourself and your status as a stockholder or representative of the stockholder and then ask your question, so we thank you for cooperating there.

Now, I received the affidavits of mailing from Computershare and Broadridge, which state that the notice of the meeting is being dually given. All stockholders of record at the close of business on April 8, 2013 are entitled to vote at this meeting.

I’ve also been advised by the Inspector of Elections that holders of our outstanding Class A and Class B common stock representing at least the majority of the voting power of our outstanding Class A and Class B stock that entitled to vote, this is perhaps the longest sentence ever written, sorry, entitled to vote is represented today in person or in proxy, so all the required number of people is here. So therefore our quorum present and the meeting is dually constituted and the business of the meeting may proceed.

So the first item of business is election of Directors. We’ll elect 10 Directors in today’s meeting. The Directors that we elect today will hold office until next year’s meeting 2014 and until their successors are duly elected and qualified.

So the Board of Directors has nominated the following for this year’s election, Larry Page; Sergey Brin; Eric Schmidt; John Doerr; Diane Greene; John Hennessy; and [other], Paul Otellini; Ram Shriram; and Shirley Tilghman.

Now our bylaws require that stockholders provide advance notice of their intent to nominate anyone as a Director. We haven’t received any notices so I declare the nominations for Directors close.

Now the next matter submitted to the stockholders is the ratification of our appointment of Ernst & Young as our independent registered public accounting firm. Our Board of Directors has recommended that our stockholders ratify the appointment of Ernst & Young for the 2013 fiscal year.

Now the four, the next four items are actually all stockholder proposals, our Board has unanimously recommended that our stockholders vote against all four stockholder proposals that will be presented today.

The first stockholder proposal is being brought by Pax World Mutual Funds. So I’d like to introduce Ms. Meredith Benton, who is representative of Pax World Mutual Funds to represent the proposal, there you are, you will have 3 minutes to make the statement and I’ll advise you of time. Please proceed.

Meredith Benton

Great. Thank you. Thank you to the members of the Board and to fellow shareholders. As stated my name is Meredith Benton, and I’m a Vice President of Boston Common Asset Management. I speak today on behalf of Pax World Funds and proponent of proposals three, which seeks a report on lead battery use in company's data center operations.

Currently, shareholders are missing key pieces of information about how Google disposes of lead batteries used in its data center operations. As outlined in the proposal, datacenters used lead batteries to prevent power disruptions in the event of a grid failure. Shareholders need to understand how Google track the fate of used lead batteries generated from operations and to ensure that batteries are properly recycled in appropriately licensed facilities that meet stringent environmental and occupational safety standards.

Recently, there have been many published articles and media reports of lead poisoning incidents in communities surrounding lead battery recycling facilities in developing countries, which have low standards regarding the disposal of lead batteries relative to the United States.

As a result, there are reportedly high levels of community and occupational exposure around lead battery recycling plants in Mexico, a country that receives approximately 20% of the United States used industrial and vehicle batteries.

Additionally, we have found that several technology focused companies have policies on the disposal of lead batteries. For example, Sprint recently adopted a lifecycle policy on lead acid batteries. Sprint policy acknowledged present and potential impacts to the environment, surrounding communities and occupations associated with the lead acid battery recycling process outside the United States.

While we encouraged by Google admission that has devised a system to handle, package, ship and recycle every battery properly, Google investors have no data on which to base independent evaluations of performance or to compare the company's efforts in this area to its peers.

As the owner and operator of a large number of data centers worldwide, Google is both directly and indirectly exposed to the reputational risk associated with health hazards from purchasing and recycling lead batteries. Considering this fact, we believe it is appropriate for shareholders to be able to view what policies govern, purchasing and recycling lead batteries.

Finally, ISS Proxy Advisory Services, a leading advisory firm recommended that it clients vote for our proposal. They did so stating as a -- for this resolution is warranted as shareholders would benefit from additional information on Google's current policies and practices, as well as perspective policies and practices to manage lead batteries in its supply chain. Thank you.

David Drummond

Thank you very much, Ms. Benton. The second stockholder proposal is being brought by [Mr. John Chevinen]. I believe John has some representatives here to present the proposal, [Mr. Jacob Parents]. Yes, there you are? You have 3 minutes to make a statement. Please proceed.

Jacob Parents

Excellent. My name is [Jac Parents]. I’m representing Public Citizen at Consumer Advocacy Organization. I'd like to move John Chevinen’s proposal regarding equal shareholder voting without making any further comment on it at this time.

David Drummond

Okay. Thank you very much. The third stockholder proposal is being brought by Mr. James Ritchie. I believe Mr. Parents is here for repeat performance, 3 minutes.

Jacob Parents

I’ll be here all night. Thank you, Mr. Drummond. My name is Jac Parent again. I represent Public Citizen the Consumer Advocacy Group. I am here to present James Ritchie’s proposal that urges a policy whereby senior executives retain significant stock ownership, otherwise known as Skin in the Game as the Warren Buffett calls it.

We believe such ownership more closely aligns senior management with shareholder interests. This is particularly important given the fact that there are several policies Google has right now that are not in line or appear not to be in line with shareholder interests.

The first as an example I would like to highlight a couple of this right now. The first concerns are company’s failure to disclose political spending, an irony given that our company provides the world with a ready Window on virtually all information.

We think that if senior executives have more Skin in the Game they would support political spending the disclosure as a means of championing, transparency and protecting the Google brand.

In the same regard, our company continues to be a member of the U.S. Chamber of Commerce. This is despite the fact that the U.S. Chamber actively lobbies against policies the company has supported on climate change, internet regulation, intellectual property rights, privacy rights, net neutrality, LGBT and women’s right, among others. For the company whose brand is so closely tied to its lofty principles, this is a serious threat to the integrity of the Google brand.

We believe again that if company leaders would make such a choice if their compensation was more closely tied to the faith of shareholders, therefore we ask our fellow shareholders to vote for this proposal on executive stock retention and urge our Directors to consider it carefully. Thank you.

David Drummond

Thanks very much, Mr. Parents. Now the fourth stockholder proposal is being brought by the Laborers’ District Council and Contractors’ Pension Fund. Mr. [Isaac Wallace] will be presenting the proposal. There you are Mr. Wallace. Please proceed, you have 3 minutes.

Isaac Wallace

Thank you. Good afternoon, Mr. Chairman, members of the Board of Directors and fellow shareholders. My name is Isaac Wallace and I’m pleased to be presenting shareholder proposal number six on behalf of the Ohio Laborers’ Pension Plan, which calls on the company to adopt and disclose a CEO succession planning policy.

The laborers’ union represents over 500,000 construction workers across the United States and Canada. We have over 100 individual benefit funds which represent the deferred income of thousands of laborers and their families. These funds have collectively over $34 billion in assets and are long-term shareholders in Google. We believe that CEO succession is one of the primary and most important responsibilities of the Board of Directors.

A recent study published by the National Association of Corporate Directors quoted a Director of a large technology firm saying that, a Board's biggest responsibility is succession planning, it is the one area where the Board is completely accountable and the choice has significant consequences good and bad for the corporation's future.

In it’s 2007 study, what makes the most admired companies great, Board governance and effective human capital management, Hay Group found that 85% of the most admired company Boards have a well defined CEO succession plan to prepare for the replacement of the CEO on a long-term basis and that 91% have a well defined plan to cover the emergency loss of the CEO that is discussed at least annually by the Board.

The NACD report identified several best practices and innovations in CEO succession planning. The report found that Boards of companies with successful CEO transitions are more likely to have well-developed succession plans that are put in place well before transition, our focused on developing internal candidates and include clear candidate criteria and a formal assessment process, our proposal is intended to have the Board adopt a written policy containing several specific best practices in order to ensure smooth transition in the event of the CEO’s departure.

We believe that the company has misconstrued the intent of our shareholder proposal and in its opposing statement to the proposal the company states that we believe it would be inadvisable to publicly report information regarding our confidential, internal discussions on management succession planning or to add additional details to our corporate governance guidelines and committee charters.

We couldn't agree more. It is not the Funds intention for the company to disclose proprietary or confidential information about potential or future successors, rather we wish only to know that the company has a plan in place and it is regularly considering and developing internal candidates. Thank you for your time and we urge shareholders to vote for our proposal. Thank you.

David Drummond

Thanks very much, Mr. Wallace. So that those are the presentations for the proposals because no further business is schedule to come before the meeting today, we are going to now open up the polls.

If you previously voted by a proxy you don’t need to vote today unless you want to change your vote. And please note that we received sufficient proxies before the meeting to know that proposals we discussed today will pass or fail in accordance with the recommendations that were made by our Board of Directors which are also listed in our proxy statement.

However, we want to make sure everyone has a chance to vote, so if you want to vote, and you requested a ballot when you registered for the meeting, please complete it now and we’ll give you a few moments for that.

Okay. Looks like we are mostly complete. Does anyone else have a ballot they need to collect it? Excellent. So, with that, I will declare the polls for each matter voted upon at the meeting close and we’ve now collected the ballots I believe.

So, let me go through the results. I’ve been advised by the Inspector of Elections that the nominees for the Board of Directors have been duly elected. Do we need to, sorry, are there more?

Okay. I’ve further been advised that the -- by the Inspector of Elections that the majority of the shares of our Class A and Class B common stock that were entitled to vote and are present at the meeting in person or by proxy, voting together as a single class have voted in favor of the ratification of Ernst & Young to act as our independent registered public accounting firm for the 2013 fiscal year. Therefore this proposal has been approved by our stockholders.

The Inspector of Elections has advise me that the majority of the shares of Class A and Class B common stock again entitled to vote and present at the meeting in person or by proxy and also voting together as a single class have voted against the stockholder proposal regarding a report on lead batteries and Google supply chain, the stockholder proposal regarding equal shareholder voting, the stockholder proposal regarding executive stock retention, as well as the stockholder proposal regarding succession planning. So that means that each of these stockholder proposals have not been approved by our shareholders.

Now as soon as possible after the meeting we’ll complete the final vote tabulations and provide a final vote, the final vote results on our Investor Relations website, as well as a filing with the SEC.

So that ends the official part of the meeting and I declare the formal portion of our meeting adjourned. Eric will now come back and make a few remarks and you will have some chance to ask questions after that. Eric?

Eric Schmidt

Thank you very much, David, and Dave will be joining us on stage in just a little bit. I want to repeat my thanks to you all for coming. We just love having you here. And I wanted to start by talking little bit about what we are up to at Google and then we’ll have [Bernie] and Johanna to do some demos, and then Larry, and I of course will take your questions and we’re very much looking forward to that.

We are using a language inside of Google around big bets, this is being driven I think primarily by Larry, says, we need to sort of aspire greater. And I’ll tell you that if you go back and look at nine years ago and the IPO, Larry and Sergey asked you, as our perspective shareholders at the time to take the long-term view. To place a big bet on our leadership and product vision.

And in many ways at that time, that’s why I asked the folks who are here, away back when it was a leap of faith on your part, right. You believed us. Now at the time, it’s hard to imagine this now but most people thought that search was a done deal when Google started working on the problem nearly two decades ago, Larry and Sergey started at Stanford.

And it’s interesting that we forget that it was the same with Gmail. Right, the e-mail, there is nothing new about e-mail. I don’t remember most of that, who has got a new e-mail. It’s always e-mail solutions right. Launching an e-mail service was not an obvious choice for a research company, especially when we’re offering 200 times more storage than the competition.

Today, we have over 425 million Gmail users globally. And the other services are in decline. It shows you that you can enter a market with a big bet when everybody assumes that there is not interesting going on and you can do something that just works better and you can change the world. That's the way that Google likes to think about problems.

Given our example, when Google brought Android, most of us thought Andrew Rubin was nuts, literally nuts. They believe that any attempt to align the mobile industry around open source operating system would fail. I mean, I remember sitting and thinking, god this will never let this thing in.

And I’m going to answer, you are looking like oh yeah, yeah, we’ll see. And the assumption was that open-source could never work, right. And yet now, there are more than 900 million android phones in the world, shipping at a rate of 1.5 million phones per day. Now, I’m getting excited.

And by the way, it’s accelerated. Think about the impact of open source. It’s something which I worked on for 20 years or 25 years, now the number one operating system platform in the world, free software for the world from a company that’s doing well in its business.

Now, give you another example, 2006 we acquired YouTube for $1.65 billion with almost no revenue. And David who brought that deal to us, I remember seeing David going like okay, are we going to really do this, David said yeah. And you’re going to be happy with it.

We took it to the board, the board said okay. We hope you know what you’re doing. I remember investors calling, oh God, these guys have like lost it. And Larry said video matters and this is the fastest way we can get the video. How we do it? Okay. At our last Brandcast advertising event, which I spoke at Jeffrey Katzenberg who is just a prince in my view, DreamWorks animation, it’s a Hollywood studio, if you don’t know.

Describe YouTube as core to a whole new entertainment paradigm. Okay. Don’t like that example. There is two another. Let’s do Chrome. Okay. Now, I get really excited., People ask who needs another browser. I asked who should -- why should there not be another browser.

But we had an idea. We had a technical team that saw a new way of building a browser that was faster and more secure and a small interruption on the shareholder meeting. If you care about security online, you should be using chrome.

If you care about speed on your computers, you should be using Chrome. If you care about price, you should be using Chrome because it’s free. Okay. Please use Chrome. Now, 750 million people agree with you that are using Chrome for better way to go on.

In my entire career, I never thought this would happen. And it’s happing right now. Now, these are big bets. And it passed the test and Larry likes the test. He calls the toothpaste test. I remember him in wedding this one day. And he said that basically what we want to do is we wanted to products that people use once or twice a day. I guess, he brushes his teeth twice a day, me it’s once a day.

And their products that fulfill an important role in their lives. The ability to find information to access the web, to communicate with family and friends, these are things that we do all the time. These things matter and they matter to us in ways that are very, very important.

So the team now, the management team led by Larry is really focused right now internally on execution and velocity. And in fact, there are meetings about these things. And we’re focusing hard on increasing our velocity and proving our execution. The product platforms are better though through. They are better launched. They are more solid. There are far fewer bugs.

Give you an example of some thing new. Take Google Now, most of you are probably not encountered it yet but it’s on your Android Phones, for example, and on a few others as well if you download it. Well, we’ve always believed that the perfect search engine would understand exactly what you meant and give you exactly what you wanted, like you’ve done, right.

But last, a year ago, Google Now gets you the information you need just right now, just at the right amount and the right moment without you having to asked first, right. That’s kind of interesting. You don’t have to ask. It just tells you. Heading for your next deployment, well the directions with traffic conditions, they are right there on your phone, kind of useful running to catch an airplane, your boarding pass would be instantly available without you having to line up at the counter.

Now, that’s a product, right. We can get excited about. And when you land, if you’re abroad, the currency rate will appear on the screen, maybe no more scratching your head likes what’s the currency, I can never remember.

And as Johanna is going to demonstrate, voice is a key part of the way we think technology is going to evolve the next generation of search experience. We have started to crack conversation questions like, well I need a jacket this weekend.

And you can try to figure out what the weather is going to like and whether you are going to a black tie event. It just gets you the weather for Saturday or Sunday, it also helps throughout. You can tell Google to remind you to return your mother’s phone call or adding a meeting to your calendar. We believe that voice is increasingly important.

As an example, you use voice to speak to the Google OS which is a phenomenal product. It’s just easier to talk to things and voice recognition in the last few years has gotten good enough that you can actually to your computer and you’re not crazy.

On Chrome and Android, in a multscreen world, our product seems to work seamlessly. So that you can sort of access your stuff whoever device, you are using at the moment. You have noticed the tremendous effort that we have put into making our apps available on android and IOS, both the platform, not just Android, Google Plus+, Google Maps, Gmail and the UIs are now much, much more beautiful and much more coherent.

You’ll notice this when you go through our products. It’s in a big focus of the teams with Chrome switching devices becomes painless. In fact, end up on the other device exactly where you left on the first device. All the tabs are there because across your desktop, and your phone and your tablet, you can even click the back button on a different device and it just works. It’s amazing.

With Google Play, movies and books and apps and games, all accessible from the web and Android device without any syncing. Syncing is probably the thing that drives little crazy in most of our online world. We fixed it now.

To give you a sense of this, let’s take a look at this year’s IO conference, which is our very big developer conference we had up in San Francisco few weeks ago to see a momentum that was generated by our product itself. I want to give you a sense of this engine that’s producing these big bets in these products. Want to go ahead.

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I think you can see. Thank you. And if you didn’t get a chance to Google our IO, next year sign up. It was sold out in 30 seconds. That’s how important that event has become. We’re just still scratching the surface of what’s possible.

We’ll talk about that somewhere in the question. Larry took a nice share, a very profound belief in the potential for technology to improve people's lives. That’s why we continue to look at new inventions, I mentioned, Google Glass, self-driving cars. We’re continuing to invest in our core product areas.

I'm convinced of future generations. My grandchild and great grandchildren at some point of future we hope will be fumbling around in their pockets and purses for their devices. They’ll be looking up, right, looking not down, engaged in enjoying the world by talking, seeing, living.

In a 100 years time I wonder and I really do wonder whether people will marvel that we allowed humans to drive cars. The potential to reduce accidents, to cut congestion, to get rid of lot of wasted parking lots immense. In the mobility of self driving cars, we’ll bring to people who with impaired mobility will be life-changing.

Let’s do this. Let’s do the next video. And then we’ll have Bernie, come upon on stage to show our later version of Google maps. I want you guys to get a sense of what we can now do on this platform.

[Advertisement]

Think about it. Do you think technology matters? It matters a lot. I like to introduce [Bernie Siegel] come in and go ahead with that, give us a sense of some new things we are doing.

Unidentified Participant

Thanks Eric. Remember the first time you used Google maps. And imagine you could have the exact same feeling again. We have been working on something that we believe might do just that. We look at what we have today and we noticed there are three things missing.

Number one, you and I and everybody else we look at the exact same map. Wouldn’t it be awesome, if you could build billions of different maps one for every user. And not only that, it would constantly adapt to what you’re trying to do, a map truly build for you.

And number two, Google collected all these imagery from satellite to street, indoors, and even under water. Wouldn’t it be great if you could bring this all together into one immersive imagery experience?

And number three, wouldn’t it be great if you could make everything simpler and more powerful by coming up with whole new ways to interact with the map itself, truly making the map to use interface. And with those three principles, we went ahead and we rebuilt both Google maps from the ground up based on our great data with a whole new user interface. And today we’re going to show you the new Google Maps, it looks like the computer little bit of state trip so before we switch over.

Okay. State trip resolved and this is the new Google Maps. So this is a map that is built for me. It shows all the places that the Google with the same data that we use to create Google Now for you. You know my interest, place like to go to, where I booked the restaurant or my friend’s liked and that map is created from that data just for me. It has friends’ recommendations on it. And this is place each year-over-year which my friend Staphnie like and I search for the couple of times so that’s why it appeared to you.

And actually I’m really considering going there and so I’d like to see how it looks inside. So [Amanda] let’s take a closer look. So we just flew into our new immersive imagery experience. You kind of got a great sense of how this places looks like. And actually it’s really nice. So I’m definitely going to go there.

But also given this imagery experience, it’s a great way to travel. So let’s take a quick look to Rome. So this is the Saint Peter's Basilica, nice 3D model but what about the moralistic view. So this is to Google Earth experience in a browser. No downloads and no plugins, it just works.

And down at the bottom is lot of images and these are all the great things to see in that area. So we point them out for you. For example, you could go inside and have a close look there. And what you see here is a 3D photo tour that was a automatically generated from user uploaded photos. There is no manual work involved. It’s all algorithms that put us together in a short movie for you so you get a sense of how the places looks like.

Let’s go back outside. And as we zoom out and we are leaving the earth atmosphere, you can see that we see the whole earth and those clouds, they are real-time. That’s the current weather, looks pretty nice. So you can go further though. So this is how the earth looks from space. You can see that the Milky Way in the background is in the correct position, so are the stars. So we can look around and that’s the sun appears and it sets behind the earth until night lights come out. This is the future of Google Maps.

Unidentified Participant

Thank you. We had the opportunity to launch this Google IO a couple of weeks ago and the feedback has been tremendous. It’s really a very positive. We were very happy with the feedback and if you would like try it yourself go to maps.google.com/preview and sign out and we’ll send you an email in the next few days.

And with that, I’d like to welcome Eric back on stage.

Eric Schmidt

Thank you, Bernie. That was fantastic.

Unidentified Participant

Thank you.

Eric Schmidt

Okay. And Johanna. Let’s go ahead. This is Johanna Wright and talk a little bit about Google Now.

Johanna Wright

Hi, I’m going to show you some demo highlights from what we showed at IO last week or a few weeks back and we’re just going to dive right into a scenario. So I’m on the Santa Cruz Boardwalk. I’m there with my family my husband and two kids really kitty section, but I wanted to take my son over to ride the Giant Dipper, the big wind rollercoaster at the Santa Cruz Boardwalk.

Now I don’t know if my son is tall enough to go on the rollercoaster and try to walkover and see will it be more convenient if I could just ask Google. How tall we have to be to ride the Giant Dipper?

Unidentified Participant

You must be at least 12 feet 2 inches tall to ride Giant Dipper.

Johanna Wright

Cool. So my son is tall enough and we can go ride this. Now the next thing I’m going to need to know I have some restaurant reservations and I’m going to need to know do I have enough time to ride the Giant Dipper and get back in time for lunch. So with Google Now what you’re going to see me doing is swiping in and Google Now anticipates the information I need.

Can I see my restaurant reservation right here for Johnny's Harborside at 2 p.m. and its only five minutes away? So it’s plenty of time to get over, plenty of time to the restaurant. I want to get back from the Giant Dipper I can even click on this navigate button and get turned by turn directions right there.

So let’s fast forward. We go on the rollercoaster. Now we’re in the restaurant enjoying our lunch and my husband and I start talking about the upcoming week. I have a business trip to New York this week and usually on Wednesdays I take my daughter to school but I can’t remember when my flight is, do I have enough time to get her to school and then get myself for the flight? I simply don’t remember when my flight is, will it be convenient if I could just ask Google? When does my flight leave?

Unidentified Participant

Delta Air Lines Flight 1940 from SFO to JFK leaves at 8 a.m. on June 12th.

Johanna Wright

So we can see the flight leaves at 8 a.m. and my husband is going to have to drop my daughter off for school. The last time that I went to New York I was actually there not for work I was there on a family vacation and my friend [KD] asked that when I am back in town. I give her call and we go. We go out somewhere for dinner. Before I forget, why don’t I get in touch in with KD?

Send an email to KD. I’ll be in New York next week and I’m wondering if you want to get together. This is what happens with lot of demos. Send an email to KD. I am coming to New York next week and I’m wondering if you want to get together. Well, I’m really great. Anyway, I’m not going to send an email for KD but I do want to make sure I call her when I get to town.

So what I am going to do. So I’m going to set a reminder. Remind me to call KD next Wednesday. So that one worked and what are you seeing here is our reminder feature that works on times, dates and even locations like home and work. Now I’ll set this reminder and let’s fast forward again.

I fly to New York and typically when I’ll get out of my plane, I’ll be getting in my taxi. I drive go through my backpack to get my hotel reservation to tell the taxi driver where to go.

Now with Google Now I think this is on the podium, so where is the [wall fusion], Steve? Okay, sorry. So I would typically be rifling through my backpack to find my reservations but with Google Now which anticipates the information I need right at the right time, again I’m going to swipe in and I’ll see here my hotel reservation at W. I also see my reminder to call my friend KD.

Now after I have talked to the taxi driver, after I have called KD, I’m just so excited to be in New York. I’m thinking about that trip we went on last year how I saw KD and how she got to meet my kids and I want to think about see those pictures and I’d like to show them to KD. Wouldn’t it be awesome if I could say something like this to Google?

Show me my pictures from New York last year? And these actually are my pictures from New York last year and right here you see KD reading a book for my kids. It’s pretty awesome.

So what we believe search should do? It should get answer questions about the world around you and also about your own life. You should be able to talk to it in a very natural way like you might talk to a friend and it should understand exactly what you mean. And finally, it should anticipate what you want, what you want to ask even before you ask it and I hope through these demos you are able to see how all of these stuffs are going to come together. Thank you.

Eric Schmidt

Okay. Thank you very, very much. Thank you both to Bernie and to Johanna. It gives you a sense of what the magic making looks like at Google with a lot more coming. I want to finish with sort of three points that I think are important to stress and I think we’ll take questions and comments.

At first place, I would like to encourage you all to take the long view, not every bet that Google places is going to work, right? We’re going to make mistakes. It’s part of the experimental process. Since we started our spring cleaning in the fall of 2011, we’ve closed down more than 70 products and features that didn’t have the impact that we hoped.

By the way, in many cases they were good products they just didn’t scale right. But trying and failing is an important part of the way we innovate as a company and because we recognize that pursuing such projects is key to our future we will continue to seek them.

Second, new technologies always, always raise new issues for society. This was true when the telephone was invented. It was true when the camera was invented. We have a responsibility as a company to be thoughtful about how we design our products and we always need to focus on the end user benefit that’s the principle that drives the decision making inside the company.

And finally, this is an issue very close to my heart that 5 billion people not online today most of the people of the world they don’t have the benefits of the world that we live in. They’re people just like us trapped in the wrong systems or without the right educational opportunity. I think we have a duty to think about those people to create the technology that enables them to get online so that they can access the information the communications and yes the entertainment they’re also fortunate to enjoy today.

I am proud to report that I, Larry, Sergey, the management team are committed to the principles that I have outlined here, if we take this as more than a business, more as an opportunity but as a cause to make the world a better place. Thank you very, very much.

It’s my privilege now to invite David obviously up. I wanted to talk a little bit about Larry. When I met Larry 12 years ago, I knew I had met somebody who is a very good computer scientist.

In the last decade Larry has I think proven his status as the finest computer scientist of his generation and certainly one of the top in the world and using a very, very fine eye for products. I would give him the credit under his leadership now in addition for many other things the extraordinarily quality of Google’s product offering today. Larry, would you like to join us?

Larry Page

Thank you.

Eric Schmidt

Go ahead.

Larry Page

Thank you, Eric. You’re too kind.

Eric Schmidt

But in my case since I am an engineer and it’s true Larry, you really are that good, why don’t have a sit. I think what we want to do is have questions or comments and I think maybe Johanna if you want to come up as well you’re welcome to. Yes, sir.

Larry Page

Yeah, come on.

Question-and-Answer Session

Unidentified Analyst

Hi, good afternoon. I’m Justin Danhof. I’m representing the National Center for Public Policy Research Company Shareholder. I’ve quick two-part question. First, last May Google announced it would begin censoring the company shopping platform by in part removing listings for illegal items such as guns and ammunition. This decision in the company’s implementation of the policy strongly coincided with President Barak Obama’s push for additional gun control laws in the country. I’m aware that the company’s senior management many are avid supporters of the White House as our many shareholders here and I also understand that gun sales create valid liability concerns and are encumbered by burdensome regulatory structure?

But because of the way Google’s shopping platform is structured, this new policy means that the company is likely rejecting revenue sources from gun and ammo suppliers. So given the timing of the policy, the first question I have is can shareholders be confident that your choice to remove gun and ammo listings was based on profitability business concerns or was Google making a public policy statement and we get the second part and I’ll go with that and…

Eric Schmidt

Let try to answer your question, yes? Gentlemen.

David Drummond

Sure. Let me answer that. One of the things I work on at Google is our policies around our products and what we allow and what we don’t and you may not know that we have advertising of course is our main source of revenue.

Our advertising -- our policy with advertising is we’ve not allowed gun ads almost since inception of our programs.

Unidentified Analyst

Okay.

David Drummond

So we’ve taken a position that it’s best for Google for certain things not to be advertise on our systems and that’s been our view and we’ve been consistent in that view with the shopping platform. So I can show you it’s a longstanding view that we’ve had not any kind of a recent public policy.

Eric Schmidt

And your second question?

Unidentified Analyst

Okay. So secondly, I guess…

David Drummond

Thank you.

Unidentified Analyst

… concerning Google’s homepage. This past Easter Sunday a day when more than two billion Christians worldwide celebrated the resurrection of Jesus Christ, the company decided to honor the birthday of deceased labor leader Cesar Chavez on your front page Google doodle. This decision offended many lead Christians religions of whom are company shareholders and customers, while it is true that President Obama declared March 31st as Cesar Chavez’s day, Easter comes only once a year. Instead of his birthday, Google could easily have honored Chavez on the day of his death the founding of the United Farm Workers union, the anniversary of UFW’s historic Grapes Day or even Labor Day, while we do not dispute Google’s right to celebrate what it wishes on its homepage, the company surely knew the decision to honor Chavez on Easter would insult millions of not billions of Christians.

For many people Google’s decision seemed an intentional insult. So we’re not suggesting that the company should celebrate Easter or any religious day with a Google doodle but rather that your timing was insensitive and could harm the company’s business and reputation. So from a business point of view, what went into the company’s thinking in making this decision and what did the company gain from unnecessarily upsetting so many customers?

Eric Schmidt

I would answer by saying that we always face choices and there was no intent to insult anyone and there are plenty of opportunities to acknowledge the incredible role and importance of religious holidays and other areas. Larry, would you like to add anything to that? It was certainly no intention and if it was offence it was certainly not intended and I do apologize.

Larry Page

Yeah, great.

Eric Schmidt

Okay. Yes, sir, and welcome back.

Unidentified Analyst

Good to be here Dr. Schmidt. Now I am John Simpson. I am a shareholder. I am also Director of Consumer Watchdog’s Privacy Project. I am wearing our Google Track Team tracking jacket. Last year some of you may recall we tracked you around like parking lot.

Eric Schmidt

I remember the ice-cream machine.

Unidentified Analyst

And the ice-cream machine in Washington and so on where we tracked folks through our office building, but I’m buying myself today. I do have a pair of Wi-Fi glasses like I give you if you wanted them but that’s another and two serious questions relating to Google Glass. You’re seen as one of the greatest things to come down a pike we have some serious doubts. We see it as perhaps unleashing one of the most privacy intrusive perhaps even and really in devices ever users will be able to surreptitiously photograph and video us as we unsuspectingly go about our business or our kids as they play in the neighborhood park. So Google Glass is a warriors dream comes true.

But ironically, as I read the rules of today’s meeting, I couldn’t have worn a pair in here. You don’t allow photography or taking video and it seems to me that is a little bit hypocritical to sort of actively bets and aid possible privacy violations by so many others outside so jealously to protect your own privacy which brings me to the question?

Will you offer people who have been photographed or videoed with Google Glass without your permission the ability to have those images removed from Google’s database and not be used for advertise and the marketing purposes, much like you’ll allow images to be blurred on street view if I don’t want my home to be shown. So will there be some policy that if I find out glass video has been taken of me in an intrusive way, can I get it removed from your database?

Larry Page

Yeah. I think there’re a number of questions there. How many of you have a cellphone on you today? So most people and that has a camera on it and it’s in the room. So I think, as cited we are obviously there are cameras everywhere today.

We’re seeing a lot of this kind of concern over unreleased products. I remember the day when we released Gmail people are very, very worried about it and we see this as kind of a constant thing. We’ve products that are announced but not yet in the hands of lots of people, people worry about all sorts of things, but actually when we use the product we don’t find it to be a big concern.

So I have a Google Glass, I love using, I love taking pictures of my kids and I think it makes that process easier. I think we’ve gone to some [fans] to make sure we pay attention to the privacy issues around that and so on. But at Google where we have lots of this aren’t allowed, when you go into the bathroom you don’t claps enter their someone might be wearing glass into the bathroom just like you don’t claps enter so somebody might be holding up their cellphone as they go into the bathroom which is not that big a deal.

So I’d just encourage you all not to try to create fear and concern about technological change until it’s actually out there and people are using it, and they understand the issues. I think we get much better outcomes.

Eric Schmidt

You had a second question.

Unidentified Analyst

Second question relates to someone who would be using glass in a way where the subject knows that they’ve been photographed, so it’s they’re happy with it and so on? But down the road for whatever reasons the person does not want that video anymore, are they going to be able to remove that from the Google database or it is there forever?

Larry Page

I think that’s a more general question about whether you should have the right to control what other people do with your image or whatever and I think that’s a pretty complex question.

Unidentified Analyst

I’m talking about me is the user who’s put it up, it’s my video, now I have changed my mind and I don’t want it there anymore, can I take it down. I put it another way it would be now I guess to being able to send with Google Glass a do not track message and if that were sent then would Google honor it?

Larry Page

Okay. In general we try to make sure that any way users can control their own information or information they’ve created and that’s the value we have so that’s consistent with that but you’re getting into very specifics of those.

Eric Schmidt

Okay. Thank you very much. Let’s go behind. Thank you.

Unidentified Analyst

Yeah. My name is [Tim Clovercon]. I represent a German investment company owned by family business owners called Investment (inaudible) and a Germany publishing company called VNR owned by that group. Looking into the VNR figures, we found that from 2010 to 2012 our AdWords spending shrank from over $7 million to $5 million per year, actually we are willing to spend much more, but therefore we would need a permanent contact to support us from what annual sales levels and does Google assign a permanent sales person to an advertise $1 million, $5 million, $10 million or higher. Is the Google policy to have a longstanding relationship with clients or is it like a diplomatic core change personal every three years before they get too cozy with the customers.

Eric Schmidt

In general the answer to your question varies by country. I don’t actually know the numbers in Germany. I can tell you that what typically happens with smaller vendors is they have online services then they graduate to someone they can talk to on the phone and then as they get larger they have a person who comes visit them and then they have a whole team that visits them along with me, right? So that sort of a hierarchy. So what I would encourage you to do is to have an extraordinarily successful business and we’ll all visit you, right.

Unidentified Analyst

Yeah.

Eric Schmidt

And I don’t exactly know the threshold points but I can tell you they’ll be very much I want a long-term relationship with you. We essentially don’t lose customers and we want to sort of deepen those relationships for all the other reasons. Yes, sir, and welcome back.

Unidentified Analyst

Thank you. My name is [Shale Nordic] and I wanted to thank you for really good lunch today. As I go up, I noticed protestors outside from the Service International something or other, SEIU? And as a result of that I interviewed a number of your contract personnel. I asked them if they wanted to become members of the Service Employees International Union, and someone who didn’t know what I was talking about, but those that answered me said, no, and I hope that Google will withstand the pressure from a rather corrupt union to disrupt the lives of their employees -- contract employees by having them join the SEIU? I wanted to make a comment on the Laborers' International Union. I remember that 13 years ago that was also one of the most corrupt unions in the country. They were involved, the guy who ran it whose name is spelled C-I-O-A or something like that, Cioa was undergo, going to be (inaudible) or something like that and he made a deal with Clinton Administration and escaped his correct punishment. And I just wanted to say that. Thank you

Eric Schmidt

Thank you, David.

Unidentified Analyst

Oh, I’m sorry had one other question, you had real question?

Larry Page

We’ll address your question. We’ll address your question?

Unidentified Analyst

I just read you’re not going to have poor anonymous on the Glass.

Eric Schmidt

That’s correct.

Unidentified Analyst

And congratulations. Do you allow porn on chrome?

Eric Schmidt

Chrome is a browser that accesses everything on the internet and fortunately or unfortunately depending your point of view, adult porn is present on the web.

Unidentified Analyst

Okay.

Eric Schmidt

Welcome back. I’m glad to see you with us,

Unidentified Analyst

Thank you. Katherine Alexander, Shareholder.

Eric Schmidt

Hi Katherine.

Unidentified Analyst

I like iGoogle very much. Every time I open my computer which is more than twice a day I see immediately the time, the date, the weather, the news. I don't know if anybody else here enjoys or uses iGoogle, do you? Can I see hands and yet you intend to drop this, I would ask you to reconsider?

Eric Schmidt

Okay. Thank you, Katherine. And thank you for coming. Who would like to answer that? Johanna or Larry.

Johanna Wright.

I totally want Larry to answer this.

Eric Schmidt

Johanna would like Larry to answer this question.

Larry Page

I mean I think these are some of the more difficult decisions we have to make. I think -- I iGoogle too. Unfortunately, it did not have much growth or that much usage. And we want to invest in as a company to make it better versus some of the other things, newer things we’re doing. So I think we very much believe that which type of product that addresses the needs you just mentioned are really well. And I’m sure we’ll get there but unfortunately we’ll go through a process of change in order to get there.

Eric Schmidt

So I would add by saying watch this space. Yeah Ma’am.

Unidentified Analyst

Hi, good afternoon

Eric Schmidt

I’m sorry. I apologize.

Larry Page

I forgot about that. I apologize. My error.

Eric Schmidt

Yeah ma’am. Could you start?

Unidentified Analyst

Thank you. Hi. I’m Kathy Parks. I’m a shareholder and I have some lightweight questions. When is Google going to open a store next to Apple and Microsoft at Stanford Shopping Center?

Eric Schmidt

Your think we should be between the two, next to Apple or next to Microsoft.

Unidentified Analyst

And then move on down to the University, okay, that was that and Johanna, is that your voice that answered back that sounded like you?

Johanna Wright

It’s not my voice actually.

Larry Page

That’s a good idea though.

Eric Schmidt

Okay. Johanna, you really regret being on stage, don’t you.

Johanna Wright

It’s okay. Actually I want to say a little more because I think it’s such a interesting thing. What we end up doing is we hire actors to speak and they speak, they read books and they read multiple sentences and then what we do is we create these voices synthetically out of vowel sounds coming together. We have different ends of sentences and consonants coming after vowels. It’s really interesting and may be …

Eric Schmidt

So it’s not really a person.

Johanna Wright

No.

Eric Schmidt

It’s really the union of people.

Johanna Wright

No, no. it’s a single person.

Eric Schmidt

Okay.

Johanna Wright

But the words are made up of different sounds.

Larry Page

You know, there is actually made one of these for me. They have emailed me. This is for our company meeting every Friday.

Eric Schmidt

Okay.

Larry Page

And they create a synthetic voice for me.

Eric Schmidt

Okay.

Larry Page

But I haven’t tried it yet.

Eric Schmidt

Okay. We look forward to hearing that from Larry. Now for you, thank you very much. Yeah Ma’am.

Unidentified Analyst

Hi. My name is Lauren Jacobs. I’m representing service employees international union which owns 215 shares of Google Incorporated and our pension plan. I want to speak today on why people are in the front of duplex today. SIS officers have come together with other offices across Silicon Valley to improve conditions. SIS is a company used here by this campus. Women who work for this company have reported sexual harassment by SIS managers and instead of the company investigating those charges are looking into them.

Many of those women were terminated when they step forward. Many of these workers are part time. Do not have enough hours to achieve health insurance to provide for their family. I think this does not resonate with the values of this company as stated. You have been a lead on talking about. We can do things in a way that our employees are treated well and still be one of the wealthiest and most productive companies in the world

I think on this issue we really would ask, due to think very carefully for sake of our company here to look at hiring the responsible contractor saving few pennies on this, may be short-term gain but in the long run does not benefit this broader community of Silicon Valley or the company? Thank you.

Eric Schmidt

David, would you like to answer that?

David Drummond

Thank you for your comment. And I just said that we treat these things very, very seriously. We’re very concerned about making sure our vendors have fair employment practices. The issue obviously, it’s SIS’ issue about union, not union, we certainly don’t take a position anti-union. We have venders obviously, sure you that are unionize and some that are not. So thank you for raising the concern.

Unidentified Analyst

(Inaudible)

Eric Schmidt

So we’ll take this as -- thank you. We’ll take this as feedback about our vendors. And thank you much for the feedback. Let see where we’re in the order. Yes sir.

Unidentified Analyst

Hello. My name is [Tom Zank]. I’m a shareholder and ex-Chinese Googler. My question about the Chinese strategy for Dr. Schmidt and Larry. So Chinese online users, internet population is over 564 million, it’s 80% more than the U.S. population. And China is the second largest economy. How we can ignore the market? Our market share dropped from 30% now to below 5%. So Dr. Schmidt visits the North Korea. So China’s business environment is much better then North Korea. So my question is when will you return to China?

Eric Schmidt

I was in --after we went to North Korea, we went to China. And I agree we hear China is an extraordinarily diverse, economically impressive country. I was troubled when I was in China about the continued reports of censorship spying on citizens and so forth. These are things which violate the principle of Google operates under.

It is our sincere hope that the Chinese citizens will put pressure on the people who are preventing them from having proper information. I can report to you that we have a quite a successful business in China. We have an engineering team that builds global product which I met with. And I can tell you that our revenue on advertising is growing very nicely.

So we are in China. We decided to put our search on the Hong Kong side because of the presence of the sensitive firewall which exists between Hong Kong and mainland. We want the Chinese government to stop censoring information and particular political speech. And Google takes a very strong position on that. And I understand that means that we may not serve the citizens who are victims if you will, and you would love us to, But we have some principle that are being violated by the Chinese government and we take it very seriously. Yes sir

Unidentified Analyst

Hi. My question is specifically for Mr. Larry Page. In the past, when you do mergers and acquisition, I noticed that you have paid always premium of 70%. Now is that the standard for Google and what about the recent article that I read back crunch about your intent or idea that is Google’s idea of buying a company by the name of Waze?

Larry Page

I not going to comment on a particular discussions right now. And I guess maybe the premium maybe referring to us with Motorola phone. Look I think winner is your M&A transaction and it is pretty complicated transaction. I think we're pretty good at it. David’s team actually runs that. And I think they did tremendous job. And we do -- we need to until the deal is done and do is expediently. I think we have a great team doing that more quicker at it. And we pay a variety of different prices obviously for as it is required. We do that on almost a weekly basis. We acquire things.

Eric Schmidt

Thank you. To we do in the way back, yes sir

Unidentified Analyst

My name is Tony Chen. I’m private investor and shareholder. Your companies evolved a lot over the last 10 years going from a search company now more into a lots of different products, which is great, and you sort of becoming like an incubator or as a company with a bunch of lot of startups if you will that are on this side businesses that are working and seem to be profitable and like that very much?

But my question is kind of the leader or the management of these individual divisions or startups within your company? How -- what’s the environment like for them there within this bigger company. Do they have all the freedom that they need or the resources to drive the products to the logical conclusions? How does that environment compare with say what they might see outside in the VC world if they were in that avenue to trying their startup?

Larry Page

I mean, this is something, that’s a great question, something we spent a lot of time on. I think ultimately the results are in the results like, like you mentioned Chrome and android, Gmail and all those things. And I think you know if you startup you still to have those things and so I think we’ve done a good job just looking at the results that we’ve achieved and that’s probably the mainly we measure that.

I think Google is unique and that we are able to make some more significant bets then you might make us a startup. I was reading some of the criticism of Silicon Valley recently. We are too focused on and for the start up world and small innovation. I think you with the 100 million cars or some of the other things that we are focus on now. Those are big bets and important bets that we are making and they might seem crazy, but I never wonder at least Gmail everyone that real crazy and that doesn’t seem crazy anymore, Chrome doesn’t seem crazy, android doesn’t seem crazy anymore.

So we have a track record of that and I’d like to see for Google and for other people to try to focus on more ambitious things, take a little more risk, have a little bit of failure but also get some really important things done for the world.

And I think little more interesting that the most people and that’s why people are pivotal, that’s why they like working with me, and with Eric and Sergey and all the other people there is because we are taking a long-term view and thanks to all of you we can take that view and invest in some important things, that’s relatively unique in the world.

Unidentified Analyst

Thank you.

Eric Schmidt

Thank you. We actually run out of time but we’ve got some important questions here. So if I could have the indulgence of the audience and the questioners, I like to have the three of you say it your questions and we’ll speed answer them, the three of you answer your questions, we’ll speed answer them, and three of you will speed answer them and then we’ll declare the meeting success or at least over. You guys go ahead one, two, three.

Unidentified Analyst

Well, I’ll summaries my question. My name is Ben Field. I’m the Executive Officer of South Bay Labor Council which represented 89 unions locally 100,000 working families and I also want to raise a concern about your security contractor or SIS which to make a very long story short has a long record of corporate misbehavior?

And the question is since this contractor is ungoogly to say the least, would you in the future consider taking into account whether your contractors, including your security contractors provide good quality jobs that provide benefits and paid sick days off? Thank you

Eric Schmidt

And the answer to that question is, yeah. Yeah, ma’am.

Unidentified Analyst

My name is [Ike Linquites]. I’m a shareholder. I have two short questions. One is when will you split the stock and if not, why not?

Eric Schmidt

Well, we actually announced plans to do that…

Unidentified Analyst

Okay.

Eric Schmidt

… which you can study, at the moment it’s involving some litigation.

Unidentified Analyst

I’m sorry, I missed it.

Eric Schmidt

Okay.

Unidentified Analyst

The other question is for you Dr. Schmidt, since your trip to North Korea have you heard anything about the dear leader in terms of whether his country is slowly going to open up?

Eric Schmidt

I actually met with respected leader, the dear leader is now in bombed, and after he spoke with Dennis Rodman he decline to speak with me. So I think the reality is we’re probably not going to know what they are up to, it’s very hard to predict what they are up to. Yes sir.

Unidentified Analyst

Thank you very much for giving me the opportunity to address you. My name is Rudolph Alfenito and I’m a shareholder and I’d like to read this. I attended the shareholders meeting of 2011. My question today is, what progress has made -- has Google made in regard to clean energy and climate warming in the past two years.

Sunday’s San Francisco Chronicle June 2, 2013 was an alarming article on the front pages reads, Bay Area top climate scientist, Dr. Ken Caldeira tireless warning the world regarding climate change and subsequent global warming.

Eric Schmidt

Sir, why don’t you ask your question, I think we actually agree with you on this premise.

Unidentified Analyst

The question is what progress has Google made in regard to clean energy and climate warming in the past two years?

Eric Schmidt

Okay. Larry or myself.

Larry Page

On this is an issue we carry lot of that’s, we have enough heard talk on the technology for improving energy and making its cleaner and so on. We shutdown our (inaudible) one of the things that we thought that was making a lot of progress. In our business operations, we’ve made actually lot of strides in our datacenters that something we work very hard on.

And we’ve also I think invested very significant amounts of money now in bringing renewal energy to our operations and making sure we are creating additionality in the creation of wind farms and solar projects and so on to run our company, and trying to be an example for other company’s to that. And I think that’s been a great profitable business for us and that’s one where we have done quite a bit of good and I’m sure we can do more.

Eric Schmidt

Next here.

Unidentified Analyst

I recognize you were very, very interested in climate warming and…

Eric Schmidt

This is very important.

Unidentified Analyst

Thank you very much.

Eric Schmidt

Thank you very much, [Jose]. Let’s get this quickly. Yes, sir.

Unidentified Analyst

Doug Risen, shareholder. What can we anticipate in the near future in terms of any dividend or any stock split?

Eric Schmidt

Nothing to announce on dividend and there is in fact a proposal involving a stock split which is a complicated transaction if you can review. Yeah. Yeah, ma’am? Please come.

Unidentified Analyst

My name is Marianne Dello and my stock is held in the street name. And I want to thank Google for the invitation -- for the annual invitation and particularly the luncheon.

Eric Schmidt

Okay.

Unidentified Analyst

And being 96 now I thought it might be first to…

Eric Schmidt

Congratulations.

Unidentified Analyst

So well organized.

Eric Schmidt

Thank you.

Unidentified Analyst

Everything is so well organized, we park in the parking lot, we registered, we get show further over to the campus and they say lunch is ready. So what could be better than that? So to the Board of Google I want to thank you for the groomed luncheon and the gift to take home. I bet you when I go home, the treat they will be envious and me with the Google bag. Thank you again.

Eric Schmidt

Yeah. Thank you very much, ma’am. Okay. Yes, sir.

Unidentified Analyst

My name is Mark Jacobs. I’m from Folsom, California. Every year I drive down here has been three hours and part of my reason to come to the Annual Meeting is to see products and this year I was very disappointed just to see Google Chrome and Google Plus? Why not have vehicle out here, so people can look out even if they can’t drive it, why not have the glass sort of we can see what it looks like and other products that at least been announced in beta, so we can look at them and perhaps touch, I mean, have other product demonstrations like the new Google Drive, et cetera.

Eric Schmidt

Okay. Thank you very much. We will thank you for the feedback. We have three...

Unidentified Analyst

My name Jackie. I’m a stockholder and I have come each year to ask that you don’t split the stock, because I’d like to see it go all the way half away is gone and that the guys are like to play with the stock and drive it down? You’ve done a good job this year. I’m really happy and if you want let it go ahead and split it.

Eric Schmidt

Thank you very much. Yes, sir.

Unidentified Analyst

One more thing.

Eric Schmidt

Yes, sir.

Unidentified Analyst

You are going to have pornography at least had a good pornography.

Eric Schmidt

Yeah. I’m not even going to answer that question. Yes, sir.

Unidentified Analyst

I have a quick question about the U.S. Chamber of Commerce, as Larry was just saying, Google does hold very important things like climate change and fighting making sure that we have a better planet to leave in the future. So why when the Chamber as oppose our company on that issue along with intellectual property, with labor issues, on trade, all kinds of different things, why do we continue to have membership in the U.S. Chamber of Commerce.

Eric Schmidt

David?

David Drummond

Well, sure, it’s great, it’s a good question. Look we have -- we actually have debates about this. So there are number of things that the Chambers up to that we actually disagree with them, we are very vocal about that. On balance they do things that are actually also good for our industry and for our business. So for -- we are members for now, but it something that we do review.

Eric Schmidt

Okay. Thank you. And our final question. And welcome back.

Unidentified Analyst

Thank you. Hi. My name is Stanley. I’m an owner of Google shares since 2006 and I’m talking about the film that is coming out tomorrow, I know here there are two people who are over thought and was like there will be an enter with Google, how do this people register and what are the chances? Thank you.

Eric Schmidt

My advise to you on this -- on this matter of the movie is the movie is phenomenal, because it’s about Google, and I think you are going to love it. Thank you so much for coming to our Shareholder Meeting. Thank you Larry, David, Johanna. All right. So see you in a year.

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Source: Google's CEO Hosts 2013 Annual Meeting of Stockholders Conference (Transcript)
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