RBC's Mark Mahaney: Ruth Porat Is A Very Good Appointee For Google

Google Inc (NASDAQ: GOOGL)(NASDAQ: GOOG) announced on Tuesday that it is hiring the CFO of Morgan Stanley (NYSE: MS), Ruth Porat, as the company's new CFO. Mark Mahaney from RBC Capital Markets was on CNBC to discuss this.

Very Good Appointee

"We published a note on this. We think that she is a very good hire for the company," Mahaney said. "She's got certainly the financial wherewithal to manage one of the biggest sprawling Internet enterprises out there."

Related Link: Wall Street Cheers Changes In The C-Suite At Google

Porat's Edge

"But, there's two things that investors have been looking for out of Google that she probably gives a greater chance that they are going to happen."

He continued, "One is cash back to shareholders. Not this year, but potentially within next 12 to 18 months. And secondly, slightly greater financial discipline.

"But she has got all the tech chops. She worked in this space. She is well known in the Valley, and she knows how to handle the book. She is a very good appointee."

Bringing Creativity

Mahaney was asked what extra creativity Porat can add to Google's financials. He replied, "What I think she also brings to a company like Google is the understanding that a company like Google – a leading company in the tech space – needs to constantly keep investing.

"The point isn't to simply to come in and crack down on expenses. That will drive shareholder value down at a company like Google. It's to make sure that enough investments that they make – the three to five year, the ten year bets that this company has laid out – that they are done as efficiently as possible," Mahaney concluded.