Google employees have been informed of some changes coming to the company’s appraisal and bonus structure — and it includes a small dip in bonuses for most.
In an internal email accessed by The Times of India, Google’s Global Head of Compensation, John Casey, shared that while the company is seeing strong momentum with launches like Gemini 2.5 Pro and Cloud Next, it’s tweaking its performance review system to better reward top performers.
So what’s changing?
To begin with, more employees will now have the chance to earn the top performance rating — called “Outstanding Impact.” According to the email, Google will increase the number of these top ratings during annual reviews. Employees who earn this top grade can expect higher bonuses and equity in their 2026 compensation.
Managers will also be given more flexibility — they’re getting a bigger discretionary budget to reward employees who fall under the “Significant Impact” category, which is the next level down from the top rating.
However, there’s a catch. To make these changes possible, Google says it will “slightly reduce” the bonus and equity payouts for those who receive the “Significant Impact” and “Moderate Impact” ratings. Casey clarified that while the bonus for these categories will be lower, those who receive a “Significant Impact” rating will still earn more than their target bonus.
He also noted that the overall changes are budget-neutral, meaning the company isn’t cutting costs — just redistributing rewards to better recognize top performers.
The new appraisal structure will come into effect during end-of-year reviews and will influence the compensation cycle in 2026.
While the move aims to push performance and recognize high achievers, some employees may feel the pinch of slightly lower bonuses in the mid-range performance brackets.
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