Eric Schmidt on the Google Blog:

Larry will now lead product development and technology strategy, his greatest strengths, and starting from April 4 he will take charge of our day-to-day operations as Google’s Chief Executive Officer. In this new role I know he will merge Google’s technology and business vision brilliantly. I am enormously proud of my last decade as CEO, and I am certain that the next 10 years under Larry will be even better! Larry, in my clear opinion, is ready to lead.

This is the best decision I have heard Google make in the past 5 years. Schmidt was a terrible choice and I am very happy that Larry Page is taking over. Schmidt detailed exactly why I think this is a good decision:

For the last 10 years, we have all been equally involved in making decisions.

Translation: for 10 years we have sat around arguing about stuff.

And this:

As Executive Chairman, I will focus wherever I can add the greatest value: externally, on the deals, partnerships, customers and broader business relationships, government outreach and technology thought leadership that are increasingly important given Google’s global reach; and internally as an advisor to Larry and Sergey.

My guess is that Schmidt moves to D.C. and handles lobbying for Google, using the B.S. “Executive Chairman” title to woo politicians into thinking he runs anything. I further guess this was Larry and Sergey’s decision, not Schmidt’s.

Kudos for making the right call on this one.