Google spent $270K to reduce pay gap

Google spent $270K to reduce pay gap
© Getty

Google spent $270,000 paying some of its employees in an effort to reduce pay gaps, the company announced Friday.

Google said the $270,000 was spent on employees who were receiving a "statistically significant" smaller amount of money than other workers.

The disclosure came as Google released other data about pay inequity. 

The company said that, aside from those 228 employees, it has no “significant” gender or racial pay gap among 89 percent of its global workforce.

The remaining 11 percent of Google employees were left out the company’s analysis because they belonged to groups that Google said were too small to analyze. These groups, according to Bloomberg, included executives at the senior vice president level and above.

Google’s new numbers follow pressure from Arjun Capital, an activist investor that has pressed other companies to release gender pay data.

Natasha Lamb, a managing partner at the firm and a lead filer of gender pay resolutions, said the disclosure represents progress, but still doesn’t go far enough.

“Today's announcement represents a serious first step toward ensuring gender pay equity at Google. Still, we find ourselves uncomfortable with its lack of breadth,” Lamb said in a statement.

“Make no mistake: We are eager to withdraw our shareholder proposal at Google, but are concerned that 11 percent of Google employees are left out of the analysis published today,” she continued.

The technology giant’s disclosure also comes after the Department of Labor attempted to get the company to disclose compensation data of its employees following allegations of pay inequity.

The agency said it found systematic pay disparities between genders at Google, which the company denied at the time.

In September, a group of three women, who were later joined by a fourth, sued the company on the claim that they were paid less and promoted less than their male counterparts, which Google also denied.