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Google Rewards Employees With Millions
iseff writes "According to News.com, the Google guys created a program in November which rewards employees for outstanding achievements. The program gives the possibility of millions of dollars of stock to teams who perform great work. The goal of the program, according to Brin, is two-fold. First, it allows the company to reward 'genius', or whatever they see as genius. And second, it allows them to continue to hire all sorts of employees. According to the article, they believe that a recent grad who would like to work in a start-up will still be attracted to them because of the opportunity to create something great and be rewarded with millions (and without much of the risk associated with startups)."
It's restricted stock. Which probably means they can't sell before some point in the distant future. At that point, maybe it's worth millions, or maybe you can exchange it 1:1 for shares in Webvan. Who knows?
"I'd rather be a lightning rod than a seismometer." -Ken Kesey
As I read the article, Google awarded *stock*, not stock options - and I find that significant.
Rather than rewarding employees with paper that has no real value today (and which costs the company no real money today) and which might have value in the future, they are rewarding the employees with paper that has value today, and probably will have value in the future (as well as costing the company real money today).
If that is the case, then kudos to Google.
If the linked story is incorrect and this is nothing more than options - then I retract my kudos.
www.eFax.com are spammers
Options don't become stock immediately. Really, we're talking retiring five years after your first multi-million dollar project bonus, so you can actually receive it (assuming the stock is still worth that then... of course, it could be worth even more... or nothing at all).
RTFAATWT - that stands for RTFA All The Way Through. In fact, just read the first few paragraphs and you'd see [emphasis mine]:
I could not justify my existence if I were a turkey farmer. Would I terminate myself? Undoubtably, yes.
For those who weren't tuned in Sunday, This is the award Mr. Burns gave to Homer on Sunday's episode of the Simpsons. Poster failed, however to work in any jokes about low sperm count.
There is not nearly enough love in the world, but there is far too much trust.
True, a restricted stock may not be sold today. That is not my point.
A stock option is normally issued at very nearly today's market price for a stock, and is nothing more than the guarantee that stock may be purchased at that price.
If gasoline is $1.759 a gallon, and I offer you a piece of paper saying "I guarantee you can buy a gallon of gasoline from me for $1.759", how much is that paper worth right now.
Nothing, as you can go to the gas station and buy that gas for that price without my paper.
Now, if gas goes to $2.759 tomorrow, then that paper is worth $1.00.
If the price of gas goes to $1.009 tomorrow (fat chance), then the paper has no value whatsoever.
Now, if I give you a piece of paper that says "I guarantee you 1 gallon of gas" then that paper is worth $1.759 today. If gas goes to $1.00 a gallon, then it is STILL worth $1.00.
And that is my point - that if Google is actually issuing stock, not options, then they are doing something unusual and worthy of respect.
www.eFax.com are spammers
Jeez... I'd be happy with just replacing the damn John Wayne TP! Just cuz it's 2 ply doesn't mean it should leave paper cuts where the sun don't shine!!!
Sorry man... the Internet pooped on me.
You're right. The ratio of CEO's pay to average worker's has now gone up to 458 times (as of 2000).
Or to put it another way, the ratio of average CEO's pay to the US President's salary has risen from 2/1 to 62/1 since 1960.
Another version: shows 411 times.
I don't have the figures for armed robbery though.
according to the now unfindable by google ninetyninezeros blog
Can you say troll? This is blatently false