In a recent interview with the Financial Times, one of the biggest players in the tech sector, Google, revealed that they are considering a change in the way their staff is compensated.

According to the WSJ, Google is considering a pay cut, to be implemented over the next five years, to a maximum of $20 per hour.

In addition to cutting the amount of money a Google employee is paid, they are also considering a proposal to increase the pay of their top executives to $1.5 million.

The WSJ adds that this would likely result in Google paying an additional $600 million to its employees.

According the WSJC, Google’s CEO, Sundar Pichai, believes that this change will reduce the amount employees make and also help them “continue to grow their team and to be able to compete on a more global scale.” 

The WSJ further reports that Google has also been experimenting with a new salary cap, whereby an executive at a company will be paid at a level similar to that of their CEO.

However, it is not clear whether this new cap would also apply to Google’s top executives. According the WSJ: “It is not yet clear whether the change would apply to those at Google’s largest US companies, including Google’s parent company Alphabet Inc, or to employees at smaller firms, including smaller competitors like LinkedIn Inc, where Google has no such cap.

In both cases, the proposed change could be an early test for the company’s future pay structure.

Google, however, would need to give a company a year’s notice before making changes to its compensation, a move that would likely take at least two years to complete. 

The announcement comes as the WSJD reports that Microsoft has made a series of concessions to improve its pay system, with the company proposing that employees be paid the same as those at its parent company, Microsoft Corp. According to the New York Times, Microsoft is offering employees a 10% pay raise over the coming year, while also offering a 15% pay increase to those employees who are in the top 1% of their company. 

However, Microsoft also announced a change to its corporate governance that could lead to a reduction in its overall pay.

The company has decided to eliminate a section of its corporate structure called “Performance Review Committee,” which it says is responsible for reviewing pay and other performance measures, and it also announced it will begin offering bonuses to employees in the next three months.

Microsoft has also announced that it will cut its workforce by around 1.8 million people by the end of this year. 

This article was originally published on The Washington Post and is republished here under a Creative Commons license. 

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