Googlereported first-quarter earnings that beatWall Street's expectations on Thursday, while revenue was in-line with expectations.
The company also announced plans to create a new class of non-voting capital stock, which will be listed on the Nasdaq Stock Market, in what is essentially a dividend its paying to shareholders — in stock form.
The announcement, which came in the form of a "founders' letter" from CEO Larry Page and co-founder Sergey Brin, came as Page completed a year after his return as chief executive. ( Click to read the full text of the letter .)
Under the new plan, the owner of each existing share will receive one new share of the non-voting stock, the company said. This will give investors twice the number of shares they had before in what is effectively a two-for-one stock split — though this new class is nonvoting.
Google said the split is something investors have been asking for. In addition, employees given Google stock in the future will get the non-voting share, allowing voting power to remain with existing shareholders.
But the buzz on the trading floor is that this stock split is not the type of dividend that investors had been hoping for.Page 1 of 2 | Next Page