Google Gives Staff 10% Raises, Bonuses

Google (GOOG) has decided to give every employee a 10% raise for 2011 and build a portion of bonuses into base salaries. The company will also give each employee a $1,000 "gift," according to Business Insider.

Google CEO Eric Schmidt wrote to employees, "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."

There has already been a great deal of speculation about why the huge search company would take these actions. Most settles around the fact that the bidding for talent in the tech world has become fierce among the top companies. This would seem to be flimsy reasoning. An additional $10,000 or $20,000 a year is not going to keep the most talented people at the company. Google also reset the value of stock options in December 2009, another financial reward for its workers.

The answer may be very simple. The company had a great year.


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juliana

You can thank Bill Clinton for all these companies sending their jobs overseas, and going to China to pick up their goods that are sold here at places like Walmart, because Clinton signed the NAFTA agreement. Why not? .....it was no skin off his nose.

November 11 2010 at 2:37 AM Report abuse +3 rate up rate down Reply
cargonet84

They can probably afford this because google only pays 2.4% tax as a corporation,while your personal tax rates are much higher (search engine-google pays 2.4% in taxes)don't fall for the scam that taxing the rich means people who make 250,000 a year.Although I would love to make that much those aren't rich people.Rich would start at 20 to 50 million a year just to be in the poor boys club.

November 10 2010 at 11:57 PM Report abuse rate up rate down Reply
suzukigsxrkings

Google has done a very noble thing here and hopefully other companies follow their lead.

November 10 2010 at 10:51 PM Report abuse rate up rate down Reply
nama holston

Good for Google!!! That is what companies should do when they have had a great year. Rather than give absurd bonuses to the top people they should bestow some of the gifts on the labor force. I wish I had worked for a company like that!

November 10 2010 at 9:43 PM Report abuse +2 rate up rate down Reply
jmbkanga2

Of course Google can afford 10% raises and free lunches for employees in the Silicon Valley. After outsourcing much of their operations to Ireland where they can shelter income from the IRS, Google saves $60 Billion a year in US income taxes. Visiting their campus in Mt View is like visiting the United Nations where a majority of their employees are from Asia, mostly India and China.

November 10 2010 at 9:32 PM Report abuse rate up rate down Reply
Tracie A Nemoto

I bought stocks in this Company 3 years ago and have yet to see any gains WTF must be nice to have a Job with them because as an Investor it SUCKS!!!!!

November 10 2010 at 7:22 PM Report abuse -1 rate up rate down Reply
bbpincorp

I wish I could clean toilets at google

November 10 2010 at 2:52 PM Report abuse rate up rate down Reply
johnskii

I am an Indepedent voter and received raises under Bush but so far since Obama been elected none, null, zilch, zero..... but my health insurance costs are definately going up.

November 10 2010 at 12:44 PM Report abuse -1 rate up rate down Reply
1 reply to johnskii's comment
Jeremy

Have you tried selling your house under this Bush "raise."

November 10 2010 at 9:45 PM Report abuse +1 rate up rate down Reply
fixitright57

it pays to be republicon

November 10 2010 at 10:13 AM Report abuse +1 rate up rate down Reply
Patty

Watchdog group carefully watching the Google..... "too close ties" to Obama....while paying 2.4% in taxes - evading billions and gave huge campaign checks to Obama.

November 10 2010 at 9:01 AM Report abuse +1 rate up rate down Reply
5 replies to Patty's comment