Monday, July 26, 2004
A lawsuit alleges age discrimination and morale problems at Google.
SAN FRANCISCO (AP) -- Online search engine leader Google Inc. casts itself as an enlightened employer that pampers its employees with free meals to supplement plentiful helpings of stock options that could soon be worth millions of dollars.
But a lawsuit filed by a recently fired Google manager offers a less flattering picture, contending the company has cultivated a culture that discriminates against older workers and fostered serious morale problems.
The civil complaint, filed in Santa Clara Superior court, alleges Mountain View-based Google fired Brian Reid, 54, as its director of operations in February 2004 because he didn't fit in a culture emphasizing "youth and energy."
Google denied the allegations. "We believe Mr. Reid's complaint is without merit and will defend against it vigorously," spokesman Steve Langdon said. He declined to discuss why Reid lost his job.
Wrongful termination suits alleging age discrimination are common in corporate America, but Reid's complaint could prove awkward for Google, an unorthodox company that has depicted itself as a progressive employer since its founding nearly six years ago.
Google co-founders Larry Page, 31, and Sergey Brin, 30, emphasized their devotion to the company's workers in a letter attached to the company's plans to launch an initial public offering of stock later this year.
What's alleged
Reid said company executives initially gave him no reason for his termination before Shona Brown, vice president of business operations, told him he was incompatible with Google's youthful atmosphere. After he left, Reid said he learned he was replaced by someone in their 30s.
Reid also contends he was discriminated against for having diabetes.
The firing cost Reid his annual salary of $200,000 and 119,000 Google stock options with an exercise price of 30 cents per share. Based on estimates of Google's market value, Reid's stock options probably would have been worth about $10 million after the company's IPO. The suit seeks to recover lost compensation and punitive damages.
Reid's lawsuit alleges that Google's offices are far from Utopian.
The complaint says Google recruited Reid, a technology industry veteran, from his last job as a professor at Carnegie Mellon University West "to correct some very serious problems ... with its work force," citing management and morale problems among women in particular.
The suit didn't describe the nature of the trouble, but said that Reid cleaned things up. Reid never received a negative job review before his firing, the suit said.
Said he has evidence
During his tenure at Google, Reid said he gathered evidence that Google purposely avoids hiring older workers. Just 2 percent of Google's roughly 1,900 employees are over 40 years old, according to the suit. The average age of Google's male workers was 29.7 years old and the average age of women was 28.4 years old when Reid left.
The suit doesn't mention that most members of Google's senior management team are at least 40 years old. The older executives include: CEO Eric Schmidt, who is 48; Wayne Rosing, vice president of engineering, who is 57; and George Reyes, chief financial officer, who is 49.