Monday, October 04, 2004

Yahoo! News - Google Challenge: Keeping Wealthy Workers

Yahoo! News - Google Challenge: Keeping Wealthy Workers "As Google Inc. nears the end of its first quarter as a public company, industry watchers say one of its emerging challenges is how to keep soon-to-be wealthy workers from cashing out and moving on.
Based on Google's share price of around $130, senior vice president Bill Coleman estimated that around 60 percent of the 1,900 Google employees with the company at the end of March each now hold stock options worth at least $1 million.
"If you live in Mountain View, California, and someone gives you $1 million, you might be able to pay off your mortgage, but you can't retire," said Coleman, referring to Silicon Valley's sky-high home costs.
On the other hand, Coleman estimates that 400 to 500 of Google's longer-term employees will have stock options worth $5 million or more. "Are they flight risks? Absolutely."
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