Google is set to give all of its 23,000 employees a ten per cent salary increase in order to stem the flow of staff to Silicon Valley rivals.
According to the Wall Street Journal, heavier pay packets will arrive from January for all executives and staff. An internal email from CEO Eric Schmidt reportedly said: “We want to make sure that you feel rewarded for your hard work.”
Numerous high profile staff have left Google for fresh pastures within competing firms, most notably nearby social networking giant Facebook. Among the Googlers Pre-IPO Facebook has poached are Google maps creator Lars Rasmussen, Google Android boss Erick Tseng and Google’s engineering lead of the Chrome OS project Matt Papakipos.
Schmidt reportedly said that a staff survey showed that Google staff considered base remuneration most important above bonuses and equity. Google famously employs one of the most rigorous employment processes in the industry and consistently ranks highly in surveys of most desirable place to work.
However senior talent may feel that their options are limited within a publicly listed company compared to jumping ship to pre-IPO firms which could potentially deliver massive windfalls when they eventually transition to a public offering.
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