Investors of Google Inc are increasingly getting concerned over the rising expenses incurred by Larry Page, a current CEO of the Mountain View giant, in a move to boost the revenue growth. Shares of the company declined more than 5% as investors are focused on the rise in expenses to $2.84 billion.

Thus, a 29% increase in net revenue lost its significance as the funds are planned to invest in increased hiring, company-wide salary raises, and in everything from marketing to technology.

Meantime, analysts say that Page will keep spending on innovative products to further expand in the markets dominated by its Google’s rivals: social networking by Facebook and mobile computers by Apple.

Google executives said on Thursday the dramatically stepped-up spending was part of the company's plan to chase multibillion business opportunities.

While Google makes high-flown statements that Page will bolster innovation and cut bureaucracy his comments this week failed to reassure Wall Street about the management change.

"You got expenses growing faster than revenue and some people were caught by surprise by the willingness of the company to spend," said BGC Partners analyst Colin Gillis.

"But Larry Page has signaled pretty clearly that he is going to be driving up expenses. If the expenses are targeted and result in future revenue streams, then good for Larry. If not, that results in an undisciplined spending approach."

Google plans to hire more than 6,000 people this year, after taking a record 2,000 on board in the quarter and raising salaries by about 10 percent across the board on January 1.