Google Stock Options Rub Me the Right Way

The New York Times ran a story yesterday titled Google Options Make Masseuse a Millionaire. It’s a heartwarming story of…ach, who am I kidding, she made millions upon millions by rubbing shoulders with and rubbing the shoulders of the geeks who started Google. Millions.

Ah, the choices we make. Sometimes they’re good ones. Here’s what new Googlers get:

The average options grant for a new Google employee — or “Noogler” — who started in November 2006 was 685 shares at a price of roughly $475 a share. They also would have received, on average, 230 shares of stock outright that will vest over a number of years.

The NYT calculated that new Googlers are worth over $275,000 because of GOOG’s stock appreciation. And there are over 1,000 employees of Google who are holding more than $5 million.

Um, wow. I don’t know what to make of all this except to wonder how any company can compete with that kind of stock performance. You’d better be doing something a lot more than touting your clever mission statement and casual Fridays to get the best and the brightest. Because even if you don’t like it, even the best and the brightest know how to use a calculator. (Yep, people do work for money, no matter what you heard.)

Posted on November 13, 2007 by Frank Roche 
Filed Under Pay

Comments

Viewing 6 Comments

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    I get the lottery. We know that's a game of chance. However, I have mixed feelings regarding the right place/right time but paid way beyond value stories. Good for her I guess but it inflates expectations for many people.

    In terms of the typical Google option recipient, I suspect that at some future time Google will have some issues in internal equity and maybe even attracting and retaining talent. Most companies with explosive growth eventually hit a period where they slow, stagnate or even fall back in terms of performance and therefore share price. Walmart also used to talk about the number of ordinary employee millionaires it made. Not no more.
    I will hold Google above the already high regard I have for them if they successfully navigate that period in the company's life.
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    Rick, well considered. It will be interesting to watch this story play out. But gosh, the lottery part. It does draw in the talent...at least for now.
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    Because even if you don’t like it, even the best and the brightest know how to use a calculator. (Yep, people do work for money, no matter what you heard.)

    To be sure there are a lot of psychic benefits of working at Google too. At best any competing employer is probably going to be even on the quality of life issues and way behind on the financial compensation. And even if they were even on both... it's Google, man! Who doesn't want to work there? (I'm sure the work culture of Google is well-documented a million places, but nevertheless I found this article interesting -- just skim past the Agile-bashing if it doesn't interest you.)

    Then again, there's a lot of talent among the 99.99% of us who aren't smart/knowledgeable enough to work at Google.
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    Hmm... I think my reply got eaten but in short, it's not like Google is holding out money to get people to work in a lousy environment. To the contrary, everything I read about them (like this) makes me wish I were a good enough coder to work there, even for half a market salary!
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    It seems that google's experience cannot be applied to all companies... I do business in US and Europe, while in US people tend to work mostly for money (in various forms, including shares, options and other), people in Europe (Germany, French), would work better for social packages (e.g. better health insurance, discounts for some sport activities). I think that money cannot be the biggest motivator.
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    Sam, it's true, I worked in communications in Europe and it's true, it's so different than th pure economic model.

    Philip, I gotta say it sounds pretty great at that place. My kind of work environment.

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