In an internal email seen by The Times of India, John Casey, Google’s Global Head of Compensation, said the company was making the tweaks to better reward top performers, even as launches like Gemini 2.5 Pro and Cloud Next show strong momentum.
As part of the update, Google will raise the number of employees who can receive the highest performance rating, known as “Outstanding Impact”. Those who receive this top grade will be eligible for bigger bonuses and more equity in their 2026 compensation package.
Managers will also have more room to reward those in the “Significant Impact” category, which is one level below the top tier. They’ll be given greater discretion to allocate budget for bonuses within their teams.
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But there’s a trade-off. To support these shifts, bonuses and equity for employees in the “Significant Impact” and “Moderate Impact” brackets will be slightly reduced. “We will slightly reduce bonus and equity payouts for those receiving a rating of Significant Impact and Moderate Impact,” Casey wrote in the email. He added that even with the reduction, those in the “Significant Impact” group would still receive more than their target bonus.
Casey said the changes are budget-neutral and are intended to better recognise standout performance rather than save money.
The new system will be implemented during the end-of-year reviews and will shape 2026 compensation.
Although the shift is designed to boost recognition for high performers, those with mid-range ratings may feel the effects of lower bonus payouts.
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