NEW YORK ( TheStreet) -- Google's (GOOG) across-the-board 10% bonus and $1,000 holiday gift to employees suggests the company is doing well and that it wants to fight the flow of employees to rivals like Facebook.
The Mountain View, Calif., Net search giant, according to a memo published by Business Insider's Henry Blodget, has told employees that it was adjusting its bonus mix by bumping up the cash portion and presumably reducing the stock awards.
|Google CEO Eric Schmidt|
The move comes as Google's growth is taking off again, which the company's blowout third-quarter results showed. It also comes as outfits like Facebook and Twitter are rapidly expanding and, in all likelihood, headed for a lucrative, employee-enriching IPO.
Google shares are up 13% this year. That's a respectable gain, but far from the red-hot increases a few years ago that helped make so many stock-rich Google millionaires.So, in response, Google dropped a cash bomb on all its good people. With 23,331 employees as of September and assuming an average salary of $100,000, the new bonus plan will cost Google $256,641,000 next year, including the $1,000 holiday gifts. To put that number in perspective, it's 1% of Google's estimated revenue for 2011. The bigger question is whether Google employees prefer cash in the bank over pre-IPO stock options. Not a bad position to find yourself in in this economy. --Written by Scott Moritz in New York.
>To contact this writer, click here: Scott Moritz, or email: firstname.lastname@example.org. To follow Scott on Twitter, go to http://twitter.com/MoritzDispatch. >To send a tip, email: email@example.com.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV