Google (GOOG)

Individual Performance Measurement

At the beginning of 2008, our named executive officers, other than Eric, Larry, Sergey and Patrick, drafted their own performance goals, including operational, growth and leadership goals for the organization, and agreed on them with Eric. Patrick’s individual performance goals were drafted and reviewed with Eric upon hire. At the end of the year, Eric, together with our internal compensation team, assessed each executive’s performance against his or her pre-established goals and provided the LDC Committee with a performance appraisal, which included a

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performance rating. The LDC Committee used this assessment to inform its discretion in determining the individual component of the cash bonus, which is described in further detail in the Cash Incentives section. This performance appraisal process was largely subjective, with much discretion exercised by our CEO and the LDC Committee. There is no specific weight given to any one individual goal or performance criterion. The assessment is based on our CEO and the LDC Committee’s determinations regarding how well the executive performed his or her job, and such assessment is qualitative, not quantitative, in nature. For example, when our CEO and the LDC Committee determined how well each executive grew his or her organization, they placed more importance on the quality of the new hires than on the number or percentage of people hired. The performance appraisal process is the same for each Google executive with the exception of Eric, Larry and Sergey. Larry and Sergey are not measured against formal performance goals. Eric’s performance goals are set by the LDC Committee and subsequently reviewed by the full board on an annual basis. Eric, Larry and Sergey do not receive any salary or plan-based bonus other than $1 per year.

Individual Performance Measurement

At the beginning of 2007, our named executive officers, other than Eric, Larry and Sergey, drafted their own performance goals, including operational, growth and leadership goals for the organizations they manage, and agreed on them with Eric. At the end of the year, Eric, together with our internal compensation team assessed each executive’s performance against his or her pre-established goals and provided the LDC Committee with a performance appraisal, which included a performance rating. The LDC Committee used this assessment to inform its discretion in determining the individual component of the cash bonus, which is described in further detail in the Cash Incentives section. This performance appraisal process was largely subjective, with much discretion exercised by our CEO and the LDC Committee. There is no specific weight given to any one individual goal or performance criterion. The assessment is based on our CEO and the LDC Committee’s determinations regarding how well the executive performed his or her job, and such assessment is qualitative, not quantitative, in nature. For example, when our CEO and the LDC Committee determined how well each of the executive’s grew his or her organization, they placed more importance on the quality of the new hires than on the number or percentage of people hired. The performance appraisal process is the same for each Google executive with the exception of Eric, Larry and Sergey who are not measured against formal performance goals and do not receive any salary or plan based bonus other than $1 per year.