As Google users, Wall Street bankers may applaud the search engine giant’s innovative zeal. But as providers of corporate finance services they have mixed feelings about the company’s compulsion to challenge accepted practice.
When Google opted to use an auction to price the shares in its 2004 flotation, many in Wall Street feared others would follow suit, threatening the banks’ fat fees. On the other hand, when Google last month announced plans to be the first US company to make its employee stock options freely transferable, investment banks hoped it would start a trend. If it does, it could create a nice little business for banks providing the means for employees to sell their unvested options.
