SEC raises tensions at the Googleplex
Published: 10 Jan 2005 14:20 GMT
But for others who may not have gotten the same share allotments or were hired at later stages, there's a sense of inequity that can lead to a falloff in morale and job performance while increasing strains on employee relationships, he said.
"While it may not be discussed very much, it absolutely affects both their attitude at work and interaction with co-workers," said Mathiason. "There is a surface politeness, and 'we don't talk about that,' but under the surface all the problems exist. We wouldn't be human if they didn't."
Recently, CEO Eric Schmidt sold 113,000 shares of stock for about $22m, and Brin sold 200,000 shares for about $40m.
Internal tensions over money run in stark contrast to Google's well-crafted image of technologists bettering the world by perfecting Internet search. Google founders Brin and Page have long sought to set a tone internally and externally that money is an afterthought to their mission of organizing the world's information, emphasizing their humble lifestyles.
The culture has reflected that kind of college-kid humility, with its hallmark lava lamps, coloured balls and on-campus free food. Many Google employees outwardly project the role of starry-eyed believers, carrying the ideal of a grand mission in the mould of early Apple days.
A soaring share price won't necessarily destroy such ideals, but it also won't necessarily help sustain them.
Money has already brought some changes to the campus, including the arrival of in-house wealth-management services to help some employees with their stock options and a security team to protect top managers from would-be attackers.
Wealth also raises the spectre of employee defections. Already, the company's chief marketing officer, Cindy McCaffrey, has turned in her playbook. Sources say that many other early employees also are preparing to leave after stock options are taken out of a lock-up early this year.
Merrill Lynch recently initiated coverage of Google with a "neutral" rating based on fears that the end to this lock-up period might depress the stock slightly. It also said that it was concerned about Google's more immediate focus on innovating cool technologies, rather than making money from them.
"Once a person has the sense of the wealth, the commitment to the company and where it's going can fall off," Littler Mendelson's Mathiason said.
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