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Even the Masseuse is a Multimillionaire at Google

Posted by CmdrTaco on Mon Nov 12, 2007 09:32 AM
from the why-don't-they-all-just-retire dept.
PCOL writes "The NY Times is running a story on how stock options that have given an estimated 1,000 employees at Google a net worth of $5 million each affects the culture at Google. Google gives each of its new employees stock options, as well as a smaller number of shares of Google stock, as a recruiting incentive. The average options grant for a "Noogler" (new Google employee) who started a year ago was 685 shares at a price of roughly $475 a share which at last Friday's close would be worth $128,000. But employees say Google is different from other large high-tech companies where the day's stock price is a fixture on many people's computer screens. "It isn't considered 'Googley' to check the stock price," said one engineer adding that it is also considered unseemly to discuss the price with other employees. And the masseuse? In 1999 Bonnie Brown answered an ad for an in-house masseuse at Google "on a lark" and after five years of kneading engineers' backs, she retired, cashing in most of her stock options to travel the world, oversee a charitable foundation she founded, and write a book, still unpublished, titled "Giigle: How I Got Lucky Massaging Google.""
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  • Sure (Score:5, Funny)

    by moogied (1175879) on Monday November 12 2007, @09:36AM (#21323001)
    "Massaging" sure. Gotcha.

    *wink wink*

    Its cool baby, i'm not a cop.

    • Associations with prostitution aside, massage seems an altogether too intimate procedure for a company to host on campus. I mean... there's touching!
      • Re:Sure (Score:5, Informative)

        by saforrest (184929) on Monday November 12 2007, @11:41AM (#21324575) Homepage Journal
        My former company (a producer of math software) had a once-a-month onsite subsidized massage service. When I asked about it once, our HR person made a special point of emphasizing it was a chair massage, done over regular work clothes. Apparently they had once done a table massage (also over clothes) and there was some complaints that it the table made it "weird".

        But hey, all the power to 'em. I think people that uptight are likely the ones who need a massage the most.
    • Re:Sure (Score:5, Funny)

      by UnknowingFool (672806) on Monday November 12 2007, @11:20AM (#21324263)
      Mostly likely they were just normal massages, but even if it were the other kind of massage it would only slight more repulsive. Have you ever massaged an entire company of nerds? I haven't and I shudder at the thought. I say she earned her retirement! :P
    • Re:Sure (Score:5, Funny)

      by Mister Whirly (964219) on Monday November 12 2007, @12:17PM (#21325097) Homepage
      Yeah, but shouldn't the title really read "Happy Ending for Google Masseuse"??
  • Mangled summary (Score:5, Interesting)

    by niceone (992278) * on Monday November 12 2007, @09:36AM (#21323005) Journal
    The summary says:

    she retired, cashing in most of her stock options to travel the world, oversee a charitable foundation she founded, and...
    But the article says:

    She has traveled the world to oversee a charitable foundation she started with her Google wealth.
    Not the same thing. Why not just paste the article text?
  • "Giigle: how Pure Envy powers nearly every startup in silicon valley, everyone reading this book, the NYT article, this Slashdot submission and this comment"
  • by sjf (3790) on Monday November 12 2007, @09:38AM (#21323035)
    Now, that's a happy ending
  • Noogler? (Score:4, Funny)

    by MECC (8478) * on Monday November 12 2007, @09:39AM (#21323047)
    They need stock options as an incentive if new hires are called 'nooglers' :-)
  • Cash them in!!! (Score:5, Informative)

    by night_flyer (453866) on Monday November 12 2007, @09:39AM (#21323057) Homepage
    Dont get to greedy with the stock options, just before WorldCom went on its downward spiral some people were bragging about their options and what they were worth, some had been with the company for 10+ years, in the end they lost almost everything
    • Just use same day sale, and pocket the profits and pay the tax on REAL profits. Don't get greedy, think that you could exercise, hang in for a year and pay capital gains tax at 20% (or 15%) instead of income tax of 33% (or 27%). Paper profits on exericse trigger real taxes in AMT. If the tax loses more than 15% in one year, you have a loss. Watch out.

      I know people who were working for FreeMarkets. The exercised their stock when it was selling at 190$ triggering paper profits of 180$ a share and AMT. Paid

        • If you exercise the stock option and sell immediately, you are paying taxes on the real gains. Since you held the instrument for less than one year (less than one day really) your gains will be deemed to be income and you will pay income tax. If you exercise and hold the stock for a year and then sell you will only pay capital gains tax on the real gain. So it is tempting to exercise, and hold the stock for a year and sell saving on taxes.

          But, when you exercise the stock, the difference between market price and the exercise price is counted as your "gain" for the purposes of Alternative Minimum Tax. Though you have not sold anything and you have not seen any money and the gain is merely a paper gain, it is counted as taxable for AMT. If you follow this path and pay the AMT and the stock falls and you sell it at a lower price, you can claim a loss. You cost basis for the stock will the market price used in AMT calculation. So if it falls you could recover the excess tax you have paid. But still it is not a simple calculation of 33% income tax vs 20% capital gains tax. It is 33% tax in AMT + 20% capital gains on further gains in the next year or 100% of the loss in the next year. It is more complex to calculate and judge. Play it simple, get money into your pocket and pay the tax on actual realized gain.

    • Re:Cash them in!!! (Score:5, Interesting)

      by Technician (215283) on Monday November 12 2007, @10:02AM (#21323323)
      Dont get to greedy with the stock options, just before WorldCom went on its downward spiral some people were bragging about their options and what they were worth, some had been with the company for 10+ years, in the end they lost almost everything


      People forget how to make money in stock. Buy low and sell high. They tend to hold when it's high thinking they are going to be richer.. I keep sell orders in and smile when they hit my prices. I sold a bunch 3 weeks ago and sold some more last week when it peaked. If the price dips enough, I'll buy back some at lower prices. Often I can increase my holding by 20% in a month this way, or pocket 20% of my holdings and wind up rebuying the same amount of my original shares. I love it when the market moves up and down. That is how to make money.

      Don't forget.. Sell high!
      • Re: (Score:3, Informative)

        People forget how to make money in stock. Buy low and sell high. They tend to hold when it's high thinking they are going to be richer.. I keep sell orders in and smile when they hit my prices. I sold a bunch 3 weeks ago and sold some more last week when it peaked. If the price dips enough, I'll buy back some at lower prices. Often I can increase my holding by 20% in a month this way, or pocket 20% of my holdings and wind up rebuying the same amount of my original shares. I love it when the market moves up
        • Re: (Score:3, Interesting)

          I mean seriously, how the heck can you tell if a company is "low" or "high" within a 3 week period?

          Ask aroung and look at the comments... Has anyone lately said Google is low? The general take is Google is high. The knowledge is "It is high". Use that to your advantage. It is high simply means there are tons of people who will bail when the bubble bursts. If you don't want to hold the bag when the massive sell-off starts, it is a good stock to not be holding.

          If it is climbing, put in a sell order and
      • Re:Cash them in!!! (Score:5, Insightful)

        by FooAtWFU (699187) on Monday November 12 2007, @11:10AM (#21324131) Homepage
        Better idea, for most people: Don't bother day-trading. Don't even buy individual stocks like Google. Drop your money in a few good index funds and sit around 20-40 years while you wait for retirement. Anything else is borderline gambling.

        (Not that you can't make money gambling, borderline or otherwise, mind you...)

        • Re: (Score:3, Informative)

          An index fund is just barely this side of gambling itself - so I cover myself by having half my money in an index, and the other half in a managed fund.
  • We might find ordinary humdrum factory foremen managing all the country hicks flocking Detroit to get a shot at the incrdible 5$ a day wages for factory workers. These shop floor bosses might have been worth 40 grand those days when they hung their hard hats. Adjusted for inflation it might be close to half a mill of present dollars. How did it affect the culture in Ford those days?
  • new meaning (Score:3, Funny)

    by cthulu_mt (1124113) on Monday November 12 2007, @09:45AM (#21323121)
    This gives new meaning to "massaging the data".
  • by Anonymous Coward on Monday November 12 2007, @09:48AM (#21323149)
    Web company. Billions made in advertising dollars. Founders making billions. Employees getting rich from stock options.

    When this crashes it will be loud and hard. Hopefully you guys working at Google are going to do the smart thing and save as much money as you can while you can.
    • Re: (Score:3, Interesting)

      Will that ever happen, though? Everyone's using Google these days (in fact, my free e-mail provider switched to the GMail system very recently- now I essentially have a Gmail account without actually having GMail).
    • Re: (Score:3, Insightful)

      When this crashes it will be loud and hard. Hopefully you guys working at Google are going to do the smart thing and save as much money as you can while you can.

      I highly doubt google stock is going to go down, in fact I foresee it doubling or tripling inside a decade or less. Why you ask? Lets look at how google has positioned themselves:

      • They have massive bandwidth and are increasing it daily.
      • YouTube gives them a A/V branch, want to pick on ABC/MSNBC/CBS/FOX...certainly MTV is dead.
      • They have the tec
      • by Richthofen80 (412488) on Monday November 12 2007, @10:56AM (#21323943) Homepage
        Being Positioned is one thing. You can have all the capital in the world, but if you don't have a way to transform it into a revenue stream, your business isn't worth as much as your stock price. Google's current revenue stream comes from advertisements. Fine, that's a valid model. But i have no idea if its actually recouping the costs of all the projects they have going on.

        Ballmer will one day wake up and will find their mail products, office products and OS sales are all no longer selling.

        Fine, everyone uses google office, in your scenario. But how does that make Google money? Again, having tons of happy customers is fine, but not having a way to collect revenues from them directly... that's the killer. There's a difference between making people happy and making them money. Stock price is about making people money.
      • There was a time when IBM was the juggernaut, and a young Microsoft was eyeing the giant and assessing whether the stones from its' sling might topple IBM. Interestingly, Microsoft took a niche and exploited it masterfully and then extended their market share and influence to the leadership position it occupies today - but IBM is strong and has massive revenue.

        Even if Google grows to dominance and eats some of Mcrosoft's lunch, as Microsoft did to IBM, that does not spell the end of Microsoft.
    • Re: (Score:3, Insightful)

      When this crashes it will be loud and hard. Hopefully you guys working at Google are going to do the smart thing and save as much money as you can while you can.

      This happens when people fail to sell high and hold and buy instead. When a stock gets expensive, I sell. Take a look at the market last week. A couple stocks I don't own are Google and VMWare. VMWare started too expensive. Last week it peaked over $110 a share. This morning, it is at $87. Google is also too expensive to hold. Many investors
  • DOH! (Score:3, Funny)

    by jav1231 (539129) on Monday November 12 2007, @09:48AM (#21323153)
    And to think I discouraged my daughter from becoming a masseuse because I thought guys would think she's easy!
  • Google Cash (Score:5, Interesting)

    by webword (82711) on Monday November 12 2007, @09:50AM (#21323177) Homepage
    The truth is that many people working at Google are still passionate about Google and what it stands for. Now, it doesn't really matter what that is exactly. In the minds of Google employees there is something special about working at Google. Perception is everytihng.

    Also, keep in mind that the stock price keeps going up. This isn't just because Google is cooking the books. They appear to be legitimate financially. As long as this is the case, many people -- even the millionaires -- will stay on board. I predict that once Google takes a serious financial hit, many will bail out. Ideals be damned.
    • Re: (Score:3, Interesting)

      The truth is that many people working at Google are still passionate about Google and what it stands for.

      A lot of us felt the same way when I was at UUNET (RIP). Thanks, WorldCon.

      Fortunately, Google isn't run by a megalomaniacal crook.

      • Re: (Score:3, Interesting)

        Fortunately, Google isn't run by a megalomaniacal crook.

        How would you know?

        There seems to be some disconnect with reality when it comes to google or any other large geek-friendly company. Pretend for a second that they _are_ a multi-billion dollar corporation and pretend also that you know jack shit about them beyond what you're told. That "pretend" is reality.

        I can hear these stories until the cows come home. Doesn't change shit. Google is still mega-corp no matter how many segways they ride the halls with
  • by magarity (164372) on Monday November 12 2007, @09:53AM (#21323225)
    With the treasury bill rates what they are, around 4 %, each million only brings in a guarantted $40K if you want to be safe and make sure you keep your nest egg. So 5 million is 200K per year - a nice income but hardly enough to finance an out of control rock and roll lifestyle.
    • Plus you should re-invest some income to keep up with inflation. Because $40K in 20 years will be worth even less.
    • ...Also, while one may `take' that taxable 4% a year and maintain the lump sum, that lump sum has just lost about 4% (if not more) to inflation. It's not a ``nest egg'' in a sense that after 20 or so years of that, it won't be worth much.
  • And wrote about it in a book? Please, won't someone think of the children?

    .haeger

    • It must be as exciting as "How I got rich by winning the lottery"; "I bought a lottery ticket. I won. The End".
  • Stock Options (Score:5, Insightful)

    by El Cabri (13930) on Monday November 12 2007, @10:11AM (#21323403) Journal
    Maybe the reason why it's not done at Google to ostensibly check the stock price every day is out of embarassment over the fact that employees that join now will have to hope that their $700 options stay afloat while they may be more brilliant and their contribution more critical to the company than that of employees who join only one year ago.

    I think that options are great for startup companies, which Google is not anymore, to compensate for the risk that the people who work in them do, and the fact that the contribution of early employees is by definition seminal to building a successful company. But for mature companies (which Google is now), it becomes too difficult to manage as a standard compensation system. How can you keep employees focused on their commitments if the cash bonus that you can afford to offer them at their annual review is dwarfed by the value of the stock options they already got just for being hired ?
  • by LibertineR (591918) on Monday November 12 2007, @12:40PM (#21325337)
    ....because when you have spent 29 out of 30 days in your office trying to squash bugs in the project to be released the following year called "Exchange", your marriage is kaput, your boss doesnt bathe, your car has mold growing in it, and you dont know what day it is, you can say to yourself- "Ok, my life currently sucks, but next year, I can buy a new one."

    Stock options keep you going when everything else is falling apart, baby! I stared at that little window for a straight 18 months, and LIKED it.

    Sure, Mountain View aint Redmond; there are actually more reasons to go outside, but if Microsoft had been giving out free food, I think I might have died under my desk, and my group manager just covered up my body and sprayed perfume on it until we shipped.

  • by AngD (1188113) on Monday November 12 2007, @03:42PM (#21327689)
    You can read more about Bonnie and read excerpts from her hilarious book, Giigle, at her Web site: www.GiigleBook.com
    • Their house of cards will come crashing too

      So, do you have a date? Vague predictions of doom aren't "actionable intelligence".

    • Re:The next... (Score:5, Informative)

      by mrscorpio (265337) <twoheadedboyNO@SPAMstonepool.com> on Monday November 12 2007, @10:30AM (#21323647)
      I know you're an AC troll, but I've seen this attitude from many. How can you judge the worth of their stock (or their company) by the share price? What if there were only 1,000 shares outstanding, would they be worth $600 per share then? A company isn't under- or overvalued because of share price, it is because of its overall MARKET CAPITALIZATION, i.e. share price * #shares outstanding.

      Google seems to be employing the same technique as Berkshire Hathaway (Warren Buffet), i.e., never split the stock. The benefits of doing this is that your stock price is less subject to the "churn" associated with dime-a-dozen 401(k) "day traders" who don't understand that $600 * 1 == $25 * 24.

      I have no opinion either way on the value of Google stock as I haven't looked at the numbers, but it's viewpoints like yours (coming out of ignorance) that cause the boom and bust stories in the market. Find good companies at a good price run by good management (the unstated part of this is that to figure out these points, it needs to be a company in an industry you understand), then buy and hold until those factors change. That's all there is to it. Most investors don't have the patience to implement such a method, which is why you can be told how to make money and it still works. And if you doubt me, ask Benjamin Graham, Warren Buffet, and Peter Lynch how it worked for them.