Google makes changes to its remuneration structure in order to encourage higher performance of staff.
The company announced Tuesday that it would change the operation of employee performance notes. The change gives more staff the possibility of reaching one of the highest scores of its annual examination and, therefore, higher remuneration, while lower artists receive smaller bonuses and capital.
In an e-mail to staff with the object line “strengthening our performance culture”, John Casey, vice-president of Google from the compensation and worldwide benefits, said that managers could allocate the “exceptional impact” score to more employees than before.
“This means that more Googler will have the opportunity to reach this note during annual criticism, and their bonus and equity price will be modeled using the individual multiplier of the O in 2026,” he wrote in the email, which was seen by Business Insider.
Googlers’ performance is assessed once a year using an internal system known as Googler Reviews and Development (GRAD). The impact of an employee is noted on a scale, “not enough impact” being the lowest and “transformer impact” being the highest. The classification of a googleur is given generally determines their bonus and their equity.
Most googlers enter the second highest level of “significant impact”. The “exceptional impact” bucket captures a smaller number of interpreters higher, while the “transformer” bucket is reserved for a very small number of excellent googlers.
Casey has said that Google will also increase the discretionary budget it gives to managers so that they can distribute more awards to high performance that fall under this “significant impact” support.
He added that the changes would be “neutral to the budget”, which means that employees with lower notes could receive smaller bonuses and equity in their remuneration packages, because a larger part of the budget is allocated to higher supports.
“We want to be frank to finance this, we will slightly reduce the bonus and individual multipliers for a significant impact and moderate impact ratings,” Casey told staff. “It is important to note that a significant impact will remain a strong note – obtaining it will always bring you more than your target bonus.”
Google’s spokesperson, Courtenay Mencini, told Business Insider in a press release: “We bring these modifications to reward the best performers and continue our momentum throughout the business.”
Google changes have taken place in the middle of a wider change on Big Tech to manage their companies more effectively and push employees to perform better. Microsoft recently deployed new policies aimed at composing performance pressure on employees, while in January, Meta announced that it would reduce 5% of its workforce, focusing on low artists.
Although Google has not made such lengths itself, the modifications made to its performance notes are designed to push the staff to work harder and to aim higher.
“High performance is greater than ever to achieve the objectives we have set,” Casey wrote in staff e-mail, adding that changes were made to “reward the main contributors” more in the company.
Read the full email sent to Google employees:
Hi googlers, As recent moments have shown like the Gemini 2.5 Pro Launch and Cloud Next, there is an incredible momentum throughout the business right now – it’s so exciting to see Googler come together to deliver our ambitious product roadmaps. The high performance is greater than ever to achieve the objectives we have set, and we therefore make changes to reward the main contributors, in all the company teams. First, we will increase the distribution directives of the ratings that we give to managers for an exceptional impact (O). This means that more Googlers will have the opportunity to reach this note during annual exams, and their bonus and capital prices will be modeled using the individual multipurous of the O in 2026. Second, we increase the discretionary budget we give to managers so that they can further reward high performance as part of the significant impact rating. We want to be frank to finance this, we will slightly reduce the bonus and individual multipliers for a significant impact and moderate impact dimensions. It is important to note that a significant impact will remain a strong note – obtaining it will always allow you to obtain more than your target bonus. The above changes are neutral budgetary, and overall, we continue to invest in remuneration and complete and highly competitive benefits. These changes apply to the end -of -year exams and the remuneration planning in 2026. John Casey
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