Genentech's (And Apple Board Member) Arthur Levinson Leaves Google Board
Genentech chairman Arthur D. Levinson is resigning from Google's Board of Directors, the Mountain View company announced earlier this morning. His departure comes shortly after Google Chairman and CEOEricSchmidt resigned …
Context & Ripple Effects
Google and Apple have been linked at the board level since Eric Schmidt joined Apple’s board in 2006. On October 2, Schmidt had argued that his Google-Apple board role should remain in place, keeping cross-company governance under attention.
Levinson’s departure removes another director with ties to both companies, tightening the focus on whether board connections can be maintained as the companies’ interests overlap.
First-order effects
- Google loses Arthur Levinson, Genentech’s chairman and an Apple board member, from its board of directors.
- The Google-Apple board overlap is reduced by one seat while Schmidt’s own Apple directorship remains the more prominent unresolved link.
Second-order effects
- Google and Apple face greater pressure to distinguish independent governance from commercial rivalry, particularly after Schmidt defended retaining his Apple seat.
- Board appointments at both companies become more consequential because directors’ outside affiliations can draw scrutiny alongside the operating relationship between the firms.
Third-order effects
- If cross-company directorships continue to attract scrutiny, large technology companies may favor boards with fewer ties to firms whose markets increasingly intersect.
The trend: Corporate governance is becoming a competitive issue as technology companies with historical board links move into more overlapping businesses.