All Google employees will get a $1,000 holiday bonus and a 10 percent raise in 2011, according to a company-wide e-mail from CEO Eric Schmidt that was obtained by the Silicon Alley Insider.
Google just had a hugely profitable Q3, but has lost some key players to Facebook and elsewhere over the past couple of years. This could be an attempt by Google to regain some goodwill and raise morale after some rumblings that Google isn't the "cool company" to work for anymore.
A Google spokesman said, "While we don't typically comment on internal matters, we do believe that competitive compensation plans are important to the future of the company."
Last year, the WSJ reported on Google's algorithm which attempts to predict which employees are most likely to quit based on factors such as employee reviews and promotion and pay histories. Could this raise be a sign that there's some deep discontent within Google's ranks at the moment?
Here's the full e-mail from Schmidt:
I'm pleased to share some very, very good news with Googlers worldwide. But first let me say, on behalf of everyone on the management team, that we believe we have the best employees in the world. Period. The brightest, most capable group of this size ever assembled. It's why I'm excited to come to work every day--and I'm sure you feel the same way. We want to make sure that you feel rewarded for your hard work, and we want to continue to attract the best people to Google.
So that is why 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.
There's more. We've heard from your feedback on Googlegeist and other surveys that salary is more important to you than any other component of pay (i.e., bonus and equity). To address that, we're moving a portion of your bonus into your base salary, so now it's income you can count on, every time you get your paycheck. That's also effective January 1st. You'll be receiving an email shortly with further details about these changes to your compensation. And one last thing...today we're announcing that everyone will get a holiday cash bonus, too.
Googlers, you are what makes this company great, and our goal here is to recognize you for your contribution, in a way that's meaningful to you. Thank you for all that you do, and for making Google a place where magic happens.
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