Google gives employees 10 percent raise, cash

From CNET News.com: In an apparent move to stave off defections to competitors, Google announced it is giving all its employees a $1,000 cash bonus and a raise of 10 percent, according to a source familiar with the matter.

The raises, which take affect January 1, 2011, apply to all 25,000 employees at the Internet giant, according to an e-mail to employees penned by Google CEO Eric Schmidt and first revealed by Business Insider. "We want to make sure that you feel rewarded for your hard work," Schmidt wrote. "We want to continue to attract the best people to Google."

A Google spokesperson said retaining employees was key to the company but did not elaborate. "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 spokesperson said.

The move comes as Google grapples with a wave of high-profile defections to Facebook. Last month, Lars Rasmussen, one of the lead engineers behind Google Maps and Google Wave, announced he had left the Internet search giant for Facebook. Rasmussen told the Sydney Morning Herald that Facebook's offer was "much more compelling both financially and in terms of the work there."

At his new employer, Rasmussen joins former Googlers Bret Taylor, Facebook's chief technology officer, who was part of the Google Maps team, and Carl Sjogreen, now a product manager at Facebook, who was also involved with Google Maps.

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