×

This is what's wrong with Alphabet: Experts

As market watchers mull over whether Alphabet, the parent company of Google, has a leadership problem, Bill George, former CEO of Medtronic, said the company's issue is direction.

"The question is … can Larry Page guide and direct them and keep them under control?" he told "Closing Bell." "He's got a group of mavericks and they're not all going to work out."

George's comments come amid reports of leadership dissatisfaction at Alphabet, a crisis that has placed the company under investor scrutiny. Market watchers remain concern about whether Alphabet's compartmentalization helps the stock in the long run.

Last year, CEO Larry Page told investors in a release that separating the companies was an effort to "run things independently … [and] have a great CEO for each business."

Bill George
Adam Jeffery | CNBC
Bill George

Alphabet Class A stock rose 1.7 percent Tuesday. While the shares are down less than 2 percent year to date, they are up 37 percent in the past 12 months.

Still, Jeffrey Sonnenfeld of the Yale School of Management told "Closing Bell" on Tuesday that the Alphabet companies need to adopt a model in order to succeed independent of Google.

"The new businesses have their own life stages," said Sonnenfeld, who is also a CNBC contributor. "The challenge there is: what is their model?"