As Yahoo! As Google Also Losing Employees!

Jun 29, 2007 | 3,019 views | by Navneet Kaushal
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After many senior Google engineers like Vanessa Fox left for Zillow, a Real estate-based search engine, Bret Taylor and Jim Norris left their mothership to join Benchmark capital, a Venture Capital firm as "Entrepreneurs in Residence".

Apparent enough, it wasn't going to be too long before a major newspaper like Wall Street Journal would report about this sudden departure of Googlers, as they have in the article called Start-Ups Make Inroads With Google's Work Force.

The reason for the departure as WSJ explains is, "That same caliber of people is naturally going to consider carefully whether it's at Google or somewhere else that they have the most potential to do big things and do them quickly."

Secondly, "Some highly lucrative stock options are beginning to finish vesting for thousands of employees brought on during a big Google hiring spree in 2003 and 2004, lessening the financial incentives to stay. Options granted during 2003 have average exercise prices as low as 49 cents, compared with the $526.29 price in trading at 4 p.m. on the Nasdaq market yesterday. On top of all this, a new generation of Internet start-ups has matured enough to attract top technical talent and offer a real possibility of riches from a stock offering or sale to a bigger company. In contrast, Google's shares hit a record level this week, suggesting the stock simply doesn't offer the same potential gains it once did. The concentration of many of the start-ups within a few miles of Google's headquarters, which Google itself has exploited in the past, can make poaching staff a faster and easier pursuit.”

Mostly, the reason is that "a new generation of Internet start-ups has matured enough to attract top technical talent and offer a real possibility of riches from a stock offering or sale to a bigger company. In contrast, Google's shares hit a record level this week, suggesting the stock simply doesn't offer the same potential gains it once did. "

Bret Taylor, Google engineer who quit recently commented, "Google has grown to be a larger company now, so I wanted to find our own destiny." Just last year, Bret Taylor and Jim Norris won Google's very esteemed Google Founders' Award for their innovationa and services to Google.

Justin Rosenstein, 24 years old, who joined Google in March 2004 left the search engine for Facebook. He reasons his departure saying, "he still loves Google, but was attracted enough by the "huge potential upside." Also adding that Facebook had "a lot of value on the table" (stock options). After leaving, he posted a note online for friends describing Facebook as "the Google of yesterday, the Microsoft of long ago."

Nevertheless, Google is still Numero Uno in what it does and this semi-exodus does not say much about the company. According to Laszlo Bock, Google's People Operations Vice President, the company he works for is expected to receive 2 million resumes this year alone.

Apparently, Google is not the only web company facing this dilemma (of sorts) as Yahoo! too reported a loss of Patrick Crane Marketing VP to LinkedIn.

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Navneet Kaushal

Navneet Kaushal is the founder and CEO of PageTraffic, an SEO Agency in India with offices in Chicago, Mumbai and London. A leading search strategist, Navneet helps clients maintain an edge in search engines and the online media. Navneet's expertise has established PageTraffic as one of the most awarded and successful search marketing agencies.
4.thumbnail As Yahoo! As Google Also Losing Employees!
4.thumbnail As Yahoo! As Google Also Losing Employees!