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Google has given all of its employees $1,000 cash "holiday bonuses" and 2011 salary increases of at least 10%, a loyal reader tells us.
In addition, Google will also give each employee an additional raise equivalent to 1X the employee's target bonus for the year. And employees will be eligible for additional "merit increases" based on their individual performance. In another nice gesture, Google will pay the taxes on the $1,000 holiday cash bonuses, thus allowing employees to keep the whole thing.
This surprise news, Google CEO Eric Schmidt explained in an internal email (see below), comes in response to feedback that Googlers value the salary part of their compensation far more highly than bonuses or stock compensation.
Well, first it suggests that Google is still an awesome place to work. Given that employee retention has been a problem, it also suggests that Google is now going the extra mile to keep its employees happy. Lastly, it suggests that the company's financial performance continues to be very strong.