Google's next challenge: keeping workers

Dom · Oct 1, 2004, 09:05 PM

SAN FRANCISCO (Reuters) - As Google nears the end of its first quarter as a public company, industry watchers say one of its emerging challenges is how to keep soon-to-be wealthy workers from cashing out and moving on.

"The loss of key employees is a real risk for a technology company after it goes public," said Eric Jackson, an early PayPal executive who left after the online payment company's IPO and acquisition by eBay.

Based on Google's share price of around $130 (72 pounds), Salary.com senior vice president Bill Coleman estimated that around 60 percent of the 1,900 Google employees with the company at the end of March each now hold stock options worth at least $1 million.

While some workers may choose to go back to school, start a new company, or join the ranks of high-tech early retirees, analysts also note that $1 million is not what it used to be.

"If you live in Mountain View, California, and someone gives you $1 million, you might be able to pay off your mortgage, but you can't retire," said Coleman, referring to Silicon Valley's sky-high home costs.

On the other hand, Coleman estimates that 400 to 500 of Google's longer-term employees will have stock options worth $5 million or more. "Are they flight risks? Absolutely."

[Read More]

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Source: Reuters

Shinjikun · Oct 1, 2004, 09:10 PM

More than half of the Google employees have $1 million in stocks?

Damn I know Google was huge but that's insane.

goku21 · Oct 2, 2004, 01:11 AM

I wouldn't leave my job even if I was in that situation. Of course if I hated my job, I'd leave it, but then I'd go get work doing something that I'd have a passion for.

Oct 1, 2004, 09:05 PM	#1
Dom DriverHeaven Extreme Member Join Date: Jun 2002 Posts: 12,940 Rep Power: 0	Google's next challenge: keeping workers SAN FRANCISCO (Reuters) - As Google nears the end of its first quarter as a public company, industry watchers say one of its emerging challenges is how to keep soon-to-be wealthy workers from cashing out and moving on. "The loss of key employees is a real risk for a technology company after it goes public," said Eric Jackson, an early PayPal executive who left after the online payment company's IPO and acquisition by eBay. Based on Google's share price of around $130 (72 pounds), Salary.com senior vice president Bill Coleman estimated that around 60 percent of the 1,900 Google employees with the company at the end of March each now hold stock options worth at least $1 million. While some workers may choose to go back to school, start a new company, or join the ranks of high-tech early retirees, analysts also note that $1 million is not what it used to be. "If you live in Mountain View, California, and someone gives you $1 million, you might be able to pay off your mortgage, but you can't retire," said Coleman, referring to Silicon Valley's sky-high home costs. On the other hand, Coleman estimates that 400 to 500 of Google's longer-term employees will have stock options worth $5 million or more. "Are they flight risks? Absolutely." [Read More] _____________________ Source: Reuters

Oct 1, 2004, 09:10 PM	#2
Shinjikun 第3 子供 Join Date: Sep 2004 Location: Nerv HQ Posts: 1,319 Rep Power: 0	More than half of the Google employees have $1 million in stocks? Damn I know Google was huge but that's insane. __________________ Xfire: [Shinji1225 \ Status] A7N8X-E Deluxe Athlon XP 2500+ (@ 2.2 GHz 11x200 MHz FSB) Corsair TwinX XMS 1GB PC3200 Dual Channel (2-2-3-5) [color=red]ATi [/color][color=white]Radeon 9500 Pro (@ 330\310) \ [/color][color=white]Omega Catalyst Drivers v2.5.90[/color] [color=white]Ultra X-Connect 500W PSU[/color]

Oct 2, 2004, 01:11 AM	#3
goku21 DriverHeaven Lover Join Date: Jul 2004 Location: Sacramento, CA Posts: 152 Rep Power: 0	I wouldn't leave my job even if I was in that situation. Of course if I hated my job, I'd leave it, but then I'd go get work doing something that I'd have a passion for.