All Google employees will get a 10 percentage or more salary increase and a $1,000 cash Christmas bonus. Also the California based Google will pay the taxes for the cash bonus and give each employee an additional raise equivalent to their target bonus for the year.
Eric Schmidt, the CEO for Google, released a memo internally to confirm the good news.
"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. That"s also effective Jan 1st. You"ll be receiving an e-mail shortly with further details about these changes to your compensation. And one last thing…today we"re announcing that everyone will get a holiday cash bonus, too," Eric Schmidt described in the memo.
Market analysts described Google's salary raise as a move to keep employees moving to other firms especially, to its main rival Facebook. The new hike will costs the company around $1 billion a year.