Google (GOOG)

Company Performance Measurement

Our Senior Vice President of Business Operations and Chief Executive Officer, working with our internal compensation team and upon consultation with the LDC Committee, proposed bonus funding metrics for our executive officer bonus plan for 2008. The proposed company performance metrics were based on non-GAAP operating income. The 2008 formula established a multiplier of 100% for non-GAAP operating income performance of $7.069 billion. Non-GAAP operating income consisted of GAAP income excluding stock-based compensation expense and certain material non-recurring expenses. The LDC Committee reviewed and approved the proposed performance metrics based on its assessment that the proposed goals were reasonable and aligned with stockholder interests. Google’s non-GAAP operating income year-end result for 2008 was $7.847 billion, which resulted in a multiplier of 147% for executives.

Company Performance Measurement

Our Senior Vice President of Business Operations and Chief Executive Officer, working with our internal compensation team and upon consultation with the LDC Committee, proposed bonus funding metrics for our

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executive officer bonus plan for 2007. The proposed company performance metrics were based on non-GAAP operating income. The 2007 formula established a Company Multiplier of 100% for non-GAAP operating income performance of $5.284 billion. Google’s non-GAAP operating income year-end result for 2007 was $5.953 billion, which resulted in a Company Multiplier of 166%. Non-GAAP operating income consisted of GAAP income excluding stock-based compensation expense, intellectual property research and development expenses and contributions to the Google Foundation. The LDC Committee reviewed and approved the proposed performance metrics based on its assessment that the proposed goals were reasonable and aligned with stockholder interests.