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Google taps Morgan Stanley CFO as new finance chief

Ruth Porat received a BA from Stanford and worked for Morgan Stanley for a quarter-century.

By Doug G. Ware

MOUNTAIN VIEW, Calif., March 24 (UPI) -- Tech giant Google, facing questions over increased spending, reached all the way across the country Tuesday to pluck its next chief financial officer right from Wall Street.

The California-based innovator announced Ruth Porat as its next head of finance on Tuesday. Presently in the same position for Morgan Stanley, Porat will replace Patrick Pichette, who announced his retirement earlier this month.

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The British-born Porat goes to Google after two stints at Morgan Stanley, where she has been a financial specialist since 1996. She previously served at the bank between 1987 and 1993, and has been chief financial officer and executive vice president for more than five years, The New York Times reported. She is also known as one of the most powerful women on Wall Street.

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Porat, who will take over on May 26, will arrive at Google as the company attempts to navigate a new financial environment, which involves increased spending and unprecedented ambition and investment in new innovations -- such as a self-driving car that is in development.

Born in Cheshire, Porat began her career at Morgan Stanley and ultimately worked her way up to vice chairman of investment banking and global head of the financial institutions group.

During the financial crisis, she led Morgan Stanley in advising the U.S. Treasury regarding Fannie Mae and Freddie Mac and the New York Federal Reserve Bank, the Deal Pipeline magazine reported in 2009. Between 1993 and 1996 she was a financial specialist with Smith Barney.

"She has been the lead banker on numerous milestone technology financing rounds, including for Amazon, eBay, Netscape, Priceline and Verisign as well as for The Blackstone Group, GE and the NYSE," Google said in a statement posted to its website.

"We're tremendously fortunate to have found such a creative, experienced and operationally strong executive," Google CEO Larry Page said Tuesday. "I look forward to learning from Ruth as we continue to innovate in our core."

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Although a naturalized U.S. citizen and a staple in Lower Manhattan, Porat has close ties to Northern California, where Google is headquartered.

Porat received a B.A. from Stanford University in economics and international relations and an MBA from The Wharton School of the University of Pennsylvania. She also received a master's in science from the London School of Economics.

She continues to serve as vice chairwoman of the Stanford Board of Trustees.

"I'm delighted to be returning to my California roots and joining Google," Porat said. "Growing up in Silicon Valley ... I've had the opportunity to experience firsthand how tech companies can help people in their daily lives. I can't wait to roll up my sleeves and get started."

Porat's move into the technological sector, some experts say, reflects a growing motivation among executives and bankers to seek out other endeavors in the face of less public confidence and new government regulations. As a result, more tech companies are reaching out to financial experts who used to land on Wall Street, the Times reported.

RBC Capital Markets' Mark Mahaney told CNBC on Tuesday that Porat brings a wealth of benefits to Google as CFO.

"One is cash back to shareholder, not this year, but potentially within the next 12 to 18 months. And secondly, slightly greater financial discipline," he said.

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Pichette, Google's CFO since 2008, announced his retirement two weeks ago citing a desire to spend more time with his family.

"Yeah, I know you've heard that line before. We give a lot to our jobs. I certainly did," he wrote in a long post to his Google+ profile. "Working at Google is a privilege, nothing less. I have worked with the best of the best, and know that I am leaving Google in great hands."

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