San Francisco: Google Inc will unleash employee stock options so they can be sold to a select group of investors, opening a new moneymaking channel for rank-and-file workers at the expense of lowering the online search leader's earnings next year.
The Mountain View, California-based company announced the planned shift to "transferable" stock options on Tuesday, several months before the change takes effect.
The unique program is meant to make it easier for employees to assess the value of their stock options – a staple of most compensation packages in Silicon Valley, California.
With the switch, Google is hoping to make itself an even more appealing place to work than it already has become by feeding employees with free daily meals and ample opportunities to get rich off the company's high-flying stock.
Recruiting and retaining talented employees is a top priority for Google because it is in the midst of a hiring spree that is expected to continue for several more years.
Since the end of 2004, Google has been hiring an average of about 10 new employees per day to expand its payroll to nearly 10,000 employees.
"We think this will be very valuable in helping our employees understand what they own right from the beginning," said Dave Rolefson, Google's equity and executive compensation manager.
It marks the first time that a major US company has created a market where employees will be able to sell their options to sophisticated money managers looking to hedge complex financial bets.
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