Google Responds To Bonus/Pay Hike Story, Cites Importance Of “Competitive Compensation”
Earlier this evening, Henry Blodget of Business Insider reported that a “loyal reader” told them that Google was giving all employees a $1,000 holiday cash bonus and a 10 percent raise starting on January 1, 2011. If true, that’s a very significant gesture likely to the tune of well over a billion dollars (though dampened a bit by a roll back of certain other bonuses). Usually with these types of stories, Google doesn’t bother to respond or simply gives a “no comment.” But I decided to ask anyway. And the answer is far from a denial.
“While we donâ€™t typically comment on internal matters, we do believe that competitive compensation plans are important to the future of the company,” a Google spokesperson tells us. So while that’s not a “yes”, it’s just about as close as you can get to a “yes” without saying “yes”. And it’s definitely not a “no”, which if they were willing to comment, you’d think they’d say if the story weren’t true. In other words, it seems as if Blodget’s source is accurate.
And that makes sense given what we reported back in September: that Google was making “extraordinary” counteroffers to stop the flow of employees to Facebook. Google had a great year and is awash with cash, they can afford to give their employees some nice pay bumps in order to make sure they’re happy. But it’s still a little crazy that they’re giving all of them this 10 percent pay hike.