Google announces big raises and bonuses for all employees

In an email sent to all Google employees (and was bound to leak), CEO Eric Schmidt told employees that they'd be seeing a healthy Christmas bonus.

The first copy of the email I've seen is on Silicon Alley Insider and is reproduced below the fold. (Update: a Googler confirmed the email to me independently). The raise looks to be 10% across the board for all 25,000-ish full and part time employees with a $1,000 bonus added to base salaries as well.

The news comes as Google is fighting employee attrition to startups in Silicon Valley, but mostly Facebook.

A Google spokesperson quasi-confirmed the authenticity of the email by saying:

While we don't typically comment on internal matters, we do believe that competitive compensation plans are important to the future of the company.

The amount is a lot from a macro perspective, subtracting hundreds of millions annually from Google's bottom line.  But it probably isn't enough to keep Google's brightest and most entrepreneurial employees from eyeing the lucrative stock options that await them at riskier startups.

Update: CNN is reporting that the leaker was fired.

CONFIDENTIAL: INTERNAL ONLY
GOOGLERS ONLY (FULL TIME AND PART TIME EMPLOYEES)

I'm pleased to share some very, very good news with Googlers worldwide. But first let me say, on behalf of everyone on the management team, that we believe we have the best employees in the world. Period. The brightest, most capable group of this size ever assembled. It's why I'm excited to come to work every day--and I'm sure you feel the same way. We want to make sure that you feel rewarded for your hard work, and we want to continue to attract the best people to Google.

So that is why we've decided...to give all of you a 10% raise, effective January 1st. This salary increase is global and across the board--everyone gets a raise, no matter their level, to recognize the contribution that each and every one of you makes to Google.

There's more. 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 January 1st. You'll be receiving an email 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.

Googlers, you are what makes this company great, and our goal here is to recognize you for your contribution, in a way that's meaningful to you. Thank you for all that you do, and for making Google a place where magic happens.

Eric