Marissa Mayer, Google's 20th employee, becomes Yahoo!'s new CEO

A move up and out for Google's star

Marissa Mayer, a Silicon Valley veteran who was previously the head of local, maps and location services at Google, has been hired by Yahoo! to come in as their new CEO, their third in ten months and fifth in three years.

Mayer is one of Google's superstars. As the company's 20th employee, she is responsible for much of the backbone of the company, from the iconic simple white homepage (the original was never as good looking) to some of the its strongest products, such as GMail, Google Images and Google News. She was also Google's first female engineer, and has consistently been one of the most important players.

But Mayer also hit a ceiling at Google. The "triumvirate" of co-founders Larry Page and Sergey Brin and the company's longest-running CEO, Eric Schmidt, was impossible to break into, leaving her one tier down. She still ran a very important department, and was on the company's operating committee, but there was little to no chance of her moving to one of the top jobs. Even though it comes as a surprise, then, her departure makes sense.

From Yahoo!'s point of view, choosing Mayer is very important for one key choice the company has to make: whether to turn towards media, or remain a tech company. Like AOL, another internet services company which leveraged its "portal" into a powerful content provision network, Yahoo! is a valuable media company in its own right, and many had assumed that its new CEO would come from that realm. But the inference one can draw from the hiring of Mayer is that Yahoo! views itself as a tech company first and foremost, and is trying to get that house in order before it goes anywhere further.

Neither arm of the company has been particularly well run for the past few years, and Mayer has her work cut out for her. PaidContent reports the board's belief that "most of the company is search and mail and the home page," core competencies which Mayer will be familiar with, but which are also undoubtedly withering under Yahoo! as it is currently constituted.

And when it comes to more forward-looking services, Yahoo! has a poor history indeed. The company has previously acquired and killed – or as good as killed – the popular companies Flickr and Del.icio.us, earning it a twin reputation of being dangerous to be bought by and not the sort of place you want to keep your data. Mayer will have to work hard to overcome that reputation, and if the company can't buy its way out of the trouble, it will have to innovate instead, particularly when it comes to the mobile sector, where it has barely any presence at all.

Mayer has a peculiar set of incentives going into her new role. Having started at Google long before the company was profitable, she spent a lot of time being paid in equity: equity which is now extremely valuable. As a result, she is probably one of the few CEOs of a Fortune 500 company for whom her actual remuneration doesn't really count for much. Whether this is a good thing, allowing her to focus on the long term without worrying about the source of her next paycheck, or a bad thing, enabling her to take the sort of risks that no one ever would if they had "skin in the game", remains to be seen.

She is also a example of a woman determined to, in the words of a current debate, "have it all": Mayer is expecting a son in early October. The Yahoo! board didn't know that when they first approached her, but were reportedly unconcerned when they found out last Wednesday. Mayer, for her part, doesn't expect it to conflict with her new role. She told Fortune:

I like to stay in the rhythm of things. My maternity leave will be a few weeks long and I'll work throughout it.

Marissa Mayer. Photograph: Getty Images

Alex Hern is a technology reporter for the Guardian. He was formerly staff writer at the New Statesman. You should follow Alex on Twitter.

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The Brexit Beartraps, #2: Could dropping out of the open skies agreement cancel your holiday?

Flying to Europe is about to get a lot more difficult.

So what is it this time, eh? Brexit is going to wipe out every banana planet on the entire planet? Brexit will get the Last Night of the Proms cancelled? Brexit will bring about World War Three?

To be honest, I think we’re pretty well covered already on that last score, but no, this week it’s nothing so terrifying. It’s just that Brexit might get your holiday cancelled.

What are you blithering about now?

Well, only if you want to holiday in Europe, I suppose. If you’re going to Blackpool you’ll be fine. Or Pakistan, according to some people...

You’re making this up.

I’m honestly not, though we can’t entirely rule out the possibility somebody is. Last month Michael O’Leary, the Ryanair boss who attracts headlines the way certain other things attract flies, warned that, “There is a real prospect... that there are going to be no flights between the UK and Europe for a period of weeks, months beyond March 2019... We will be cancelling people’s holidays for summer of 2019.”

He’s just trying to block Brexit, the bloody saboteur.

Well, yes, he’s been quite explicit about that, and says we should just ignore the referendum result. Honestly, he’s so Remainiac he makes me look like Dan Hannan.

But he’s not wrong that there are issues: please fasten your seatbelt, and brace yourself for some turbulence.

Not so long ago, aviation was a very national sort of a business: many of the big airports were owned by nation states, and the airline industry was dominated by the state-backed national flag carriers (British Airways, Air France and so on). Since governments set airline regulations too, that meant those airlines were given all sorts of competitive advantages in their own country, and pretty much everyone faced barriers to entry in others. 

The EU changed all that. Since 1994, the European Single Aviation Market (ESAM) has allowed free movement of people and cargo; established common rules over safety, security, the environment and so on; and ensured fair competition between European airlines. It also means that an AOC – an Air Operator Certificate, the bit of paper an airline needs to fly – from any European country would be enough to operate in all of them. 

Do we really need all these acronyms?

No, alas, we need more of them. There’s also ECAA, the European Common Aviation Area – that’s the area ESAM covers; basically, ESAM is the aviation bit of the single market, and ECAA the aviation bit of the European Economic Area, or EEA. Then there’s ESAA, the European Aviation Safety Agency, which regulates, well, you can probably guess what it regulates to be honest.

All this may sound a bit dry-

It is.

-it is a bit dry, yes. But it’s also the thing that made it much easier to travel around Europe. It made the European aviation industry much more competitive, which is where the whole cheap flights thing came from.

In a speech last December, Andrew Haines, the boss of Britain’s Civil Aviation Authority said that, since 2000, the number of destinations served from UK airports has doubled; since 1993, fares have dropped by a third. Which is brilliant.

Brexit, though, means we’re probably going to have to pull out of these arrangements.

Stop talking Britain down.

Don’t tell me, tell Brexit secretary David Davis. To monitor and enforce all these international agreements, you need an international court system. That’s the European Court of Justice, which ministers have repeatedly made clear that we’re leaving.

So: last March, when Davis was asked by a select committee whether the open skies system would persist, he replied: “One would presume that would not apply to us” – although he promised he’d fight for a successor, which is very reassuring. 

We can always holiday elsewhere. 

Perhaps you can – O’Leary also claimed (I’m still not making this up) that a senior Brexit minister had told him that lost European airline traffic could be made up for through a bilateral agreement with Pakistan. Which seems a bit optimistic to me, but what do I know.

Intercontinental flights are still likely to be more difficult, though. Since 2007, flights between Europe and the US have operated under a separate open skies agreement, and leaving the EU means we’re we’re about to fall out of that, too.  

Surely we’ll just revert to whatever rules there were before.

Apparently not. Airlines for America – a trade body for... well, you can probably guess that, too – has pointed out that, if we do, there are no historic rules to fall back on: there’s no aviation equivalent of the WTO.

The claim that flights are going to just stop is definitely a worst case scenario: in practice, we can probably negotiate a bunch of new agreements. But we’re already negotiating a lot of other things, and we’re on a deadline, so we’re tight for time.

In fact, we’re really tight for time. Airlines for America has also argued that – because so many tickets are sold a year or more in advance – airlines really need a new deal in place by March 2018, if they’re to have faith they can keep flying. So it’s asking for aviation to be prioritised in negotiations.

The only problem is, we can’t negotiate anything else until the EU decides we’ve made enough progress on the divorce bill and the rights of EU nationals. And the clock’s ticking.

This is just remoaning. Brexit will set us free.

A little bit, maybe. CAA’s Haines has also said he believes “talk of significant retrenchment is very much over-stated, and Brexit offers potential opportunities in other areas”. Falling out of Europe means falling out of European ownership rules, so itcould bring foreign capital into the UK aviation industry (assuming anyone still wants to invest, of course). It would also mean more flexibility on “slot rules”, by which airports have to hand out landing times, and which are I gather a source of some contention at the moment.

But Haines also pointed out that the UK has been one of the most influential contributors to European aviation regulations: leaving the European system will mean we lose that influence. And let’s not forget that it was European law that gave passengers the right to redress when things go wrong: if you’ve ever had a refund after long delays, you’ve got the EU to thank.

So: the planes may not stop flying. But the UK will have less influence over the future of aviation; passengers might have fewer consumer rights; and while it’s not clear that Brexit will mean vastly fewer flights, it’s hard to see how it will mean more, so between that and the slide in sterling, prices are likely to rise, too.

It’s not that Brexit is inevitably going to mean disaster. It’s just that it’ll take a lot of effort for very little obvious reward. Which is becoming something of a theme.

Still, we’ll be free of those bureaucrats at the ECJ, won’t be?

This’ll be a great comfort when we’re all holidaying in Grimsby.

Jonn Elledge edits the New Statesman's sister site CityMetric, and writes for the NS about subjects including politics, history and Brexit. You can find him on Twitter or Facebook.