Google is set to modify its appraisal and bonus system, focusing on rewarding high performers with larger bonuses and equity awards while reducing compensation for lower performers. The changes include expanding the Outstanding Impact rating to a broader group, which will result in higher payouts starting in 2026. Managers will also have more flexibility in rewarding employees rated under Significant Impact. Despite cuts for some, overall compensation spending will remain the same, reflecting a budget-neutral adjustment.
Google's changes to its appraisal system aim to better reward high performers, with an emphasis on larger bonuses and equity while reducing payouts for lower-rated employees.
The company is expanding its Outstanding Impact ratings to more employees, providing larger bonuses and equity, while reducing payouts for those rated under Significant and Moderate Impact.
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