Google is changing its salary structure: what does it mean for employees here

Google It has announced that it will modify its performance rating system to reward high artists with large bonuses and equity awards, while reducing compensation for potentially low performing employees.
John Casey, vice president of Google, Global Compensation and Benefits, in an email called “strong our performance culture”, employees were informed that more of them would have the opportunity to get a “excellent impact” rating during annual reviews.
Casey wrote, “High performance is more important than ever to achieve the goals by us,” given that changes are being made to the “top contributors” in the company.
Google Manager can now reward more employees as top artists
Changes particularly affect Google’s annual review system Googler reviews And development (grade), which makes the employee’s performance on the scale of “transformational effects” from “not enough impact”. Most employees usually fall into the “significant impact” category.
Under the new structure, managers will be allowed to give more employees to rated the iconic “outstanding effect”, which directly affects compensation. Additionally, managers will increase discretionary budgets for rewarding high artists within the “significant impact” category.
However, Casey admitted that these changes would be “budget-plate”, meaning that some employees would receive less to fund the growth for top artists.
HR Head says that this change will mean that some employees may get less bonuses
Casey told the staff in the email, “We want to fulfill this to funds that we will slightly reduce bonuses and equity individual qualities for a significant impact and moderate impact rating.” “It is important to note that the significant effect will remain a strong rating – you will still get more than your goal bonus.”
Google spokesperson Curtain Mensini confirmed the changes, saying, “We are doing these changes to carry on top artists and continue their pace in the company.”
The compensation adjustment occurred amidst a comprehensive trend in the tech industry, in which companies such as Microsoft and Meta applied policies to increase the pressure of performance on employees. These changes will be applicable to the year review and 2026 compensation scheme on Google.
Casey concluded the employees in his email, “The above changes are budget-platforms, and overall we are continue to invest in broad and highly competitive compensation and benefits.”