An end to the Google bonus fairytale?

Google's gift to staffers: the HTC Dream, or G1, smartphone.

(Credit: James Martin/CNET Networks)

Clarification added December 30 (see text below).

For Googlers eagerly awaiting their famous holiday bonuses, be warned: Santa is tightening his belt too.

Google employees, some of whom have reportedly grown used to fairytale-like cash bonuses on the north side of $20,000, apparently got coal in their stockings this year. Certainly that's the takeaway for gossip blog Valleywag, which in a headline likened this year's bonus to "dogfood"--a euphemism for in-house testing--because Google would like some feedback. (Clarification: A few Google employees have contacted me to suggest that Valleywag's report on holiday bonus amounts of $20,000 likely confused performance bonuses with holiday bonuses said to be on the order of $1,000.)

So how bad was it? Well, Google gave its employees a smartphone. Yep, can you believe it? Man, if I had a nickel for all the years my bosses gave me a smartphone...

But I digress. Back to Google's gift. Apparently, Valleywag took issue with Google giving its employees an Android--its own phone! Well, actually, the memo that Valleywag reprinted referred to it as a "Dream phone." It's basically the T-Mobile G1 that retails for $179.99, but it's been customized to "work anywhere in the world" on the carrier of their choice. (Google estimates its value at $400.)

The nerve!

Here, in the real world, while many in the tech industry have received pink slips, Google employees are receiving a gift--oh, yeah, it is a gift--that many people would love to find under their trees. What a bummer, man. As far as the dogfooding goes, I am guessing that this company that has a reputation for being astoundingly generous when economic realities were more positive isn't going to can employees for not sending back the questionnaire.

Now, back to the topic of Santa...

[kcotham]

Awww, poor little Google employees. That bonus of $20,000 is not much less than I make in a year. Oh wait, that was before I got laid off. They're lucky they're getting anything, let alone having a job in the first place!!

[Cheetahjab]

agreed.. be happy to have a job.

[dcmichie]

I wonder how many Google employees already had a G1.

[karpenterskids]

Hey, they could at least sell it on ebay...

[rapier1]

When employees are used to receiving X amount of money each year as a bonus it ends up being expected and counted upon compensation. Not getting it, especially with no warning, must have come as blow to quite a number of employees. Sure, they are happy they have their jobs but would anyone reading this really be happy if his happened to them? I know quite a few people this has happened to and *none* of them are pleased or even especially sanguine about it.

[camberiu]

Here are some FACTS:

1) Google never gave out $20K xmas bonuses. The average in the past was of about $1000 per employee.

2) Employees received an unlocked version of the G1 phone. That unlocked version retails for about $499, not $179 as mentioned in this article.

[Sporlo]

"but it's been customized to "work anywhere in the world" on the carrier of their choice (Google estimates its value at $400)."

Exactly what you said (still $99 off but much closer). Read closely next time.

[businesscontacts]

It is funny how americans are so self centered. "but it's been customized to "work anywhere in the world" " They seem to forget that it is the other way around, the HTC Dream has been customized to work on the USA under the name T-Mobile G1. Google is just giving their employees the non-crippled version.

[myles taylor]

@businesscontacts
Everyone in the world is self-centered, unless they are forced to not be for some reason.

[The_Outsider_409]

It's Android is not replacing the 20K+ yearly performance based bonus, but the 1K Christmas gift. Get your facts right, please.

[bsharkey]

$20k? CASH? PER YEAR? dream on Googlers... enjoy your (est) $250 phone and LIKE IT!!

people are laid off, people are finding themselves on the street or may not know where their next meal will come from, let alone a Christmas present for their kids. save your whining

[ittesi259]

I didn't see anything in the article saying Google employees were complaining....it sounded like some stupid blogger was making fun of them instead.

[jblomquist--2008]

nice. I got laid off for Christmas. Thank god my 7 year-old is the most unselfish person I've ever known.

[bsharkey]

sorry, $400: "Sadly, despite all our best efforts, there are some countries - India, China, Brazil, Korea, Israel, Russia, Argentina, Taiwan, Hong Kong, Mexico, Turkey, Kenya, United Arab Emirates, South Africa, Egypt, Chile, and the Ukraine - where even our legal team could not work their magic. Googlers in these countries will receive the cash equivalent of the phone in their December paychecks, which is about $400 USD." enjoy.

[Craig9111]

Too bad they have to pay income taxes on the $400 phone.

[maxman4m]

Take the phone, graciously say thank you, and look for another job. But good luck, they're not out there.

[pjhenry1216]

Why would they look for another job?

[gerrrg]

Everyone should be grateful for any bonus, period.

Of course, corporate level folks across the nation, hopefully, aren't taking any bonuses while they're laying off staff. Starve yourself before you cut off others, or you'll end up losing loyalty.

[mcholyg]

Loyalty? Whatever. Corps no longer need to rely on loyalty. They've reinvested in DESPERATION for the last 7 years.

[bsharkey]

"Too bad they have to pay income taxes on the $400 phone. "

if Google includes it on their W-2, sure. otherwise I'll believe it when I see it. and at that, they may just opt to list the wholesale (company cost) rather than retail price (includes advertising, overhead, salesperson's commission/salary, and markup).

[jackdaniels08]

Are you kidding me? Any of us commenting here would be lucky to get a smart phone as a bonus! Sheesh! Look dude, if it's one thing Google is doing it's being fiscally and morally responsible and with the times. When the economy improves perhaps we'll see more bonuses. I'm sure in these difficult economic times if word got out Google was giving hundreds of thousands or millions as bonus handouts when everybody is tightening their belts and bleeding profits and revenue, I'm sure cnet would be the first one to point a critical finger at Google. It doesn't matter what Google does. Cnet just needs to dig for some dirt and even throw some dirt in Google's backyard before digging it up and cry foul and complain about it all to get eyeballs.

[myles taylor]

The thing is, I didn't get the impression that CNET was picking on Google. They were just reporting that Google bonuses were different than previous years. I didn't see any criticism or nitpicking.

[3rdalbum]

Fracking heck. I got a $200 Christmas bonus last year (more like a Christmas present), and this year my boss decided to go into liquidation and run off with $2000 he owed me in wages. Now I've got a new job, and I'm only going to get a can of beer and a bowl of chips from my employer for Christmas.

If my current employer offered me an HTC Dream for Christmas, I'd be ecstatic. The Christmas bonus is just that; a BONUS. It's not something to rely upon as part of your salary.

All y'all should just chill out. The Cnet journalist was being sarcastic, he wasn't actually saying that it was a "bummer".

[tomws]

I'm glad at least one person got the whole thing right, especially the *bonus* part. We might ought to start a Jeff Foxworthy-esque "You might be a lousy employee if..." list that includes, "you come to expect your year-end bonus as part of your salary." Here's a bold, new idea for all of those types: live within your means! You agreed to work for a certain amount of money. Don't expect any more.

[sanenazok]

Everyone needs to stop the bellyaching. If I worked at Google I would have preferred the cash instead of the phone, frankly, but *** it's a freebie that should have been avoided in these times. I much rather support the people who are venting about being laid off. That's the real problem, not whether someone got a phone or not. Since people are complaining now, next time Google should hand out some candlestick phones. Ring ring ring.

[michaelo1966]

It was a smart gift. Google employees will be seen around using their phones and that may spark interest and allow them to demonstrate it at airports, coffee shops ... places where geeks with money and time chat to other geeks w/ money and time. As more influential types see it, it may cause a cascade effect. I was just talking to somebody who closed a $2.1 million contract from what started as a discussion waiting in line to get a cup of coffee: networking in real-life still rules for PR.