All Googlers Get a 10 Percent Raise and a $1,000 Bonus
Google is already feeling the Christmas spirit it seems, as all employees are getting a $1,000 cash bonus for the holidays and a 10 percent raise in 2011. With about 20,000 employees, it's not going to be cheap for the company, though it seems that this will be offset by smaller bonuses and stock options.The company wouldn't normally comment on this type of reports, the info came from an internal memo from CEO Eric Schmidt, but, while it hasn't exactly confirmed it, its response is as close to a 'yes' as you can get.
"We’ve decided to give all of you a 10% raise, effective January 1st. This salary increase is global and across the board--everyone gets a raise, no matter their level, to recognize the contribution that each and every one of you makes to Google," Eric Schmidt said in the internal memo.
“While we don’t typically comment on internal matters, we do believe that competitive compensation plans are important to the future of the company,” a Google spokesperson said when asked about the leaked memo.
Along with the 10 percent raise, a part of the bonus employees could expect is now also rolled into the base salary.
Apparently, Google found that employees preferred to get better salaries than better bonuses or stock option grants. That may have to do with the fact that Google stock hasn't exactly been flying lately, though the company is doing very well financially.
In fact, it's precisely because it's doing so well that it can afford to pay for the 10 percent, company-wide raise which is estimated to cost the company about $1 billion per year.
Googlers already enjoy quite a lot of perks, but the company is struggling to keep employees happy as demand for skilled engineers is on the rise. Facebook has been poaching quite a bit of Google talent and can entice employees with stock options which could be worth a lot of money when Facebook finally goes for an IPO.