Google’s parent company settled a series of shareholder lawsuits Friday concerning the tech giant’s handling of sexual misconduct allegations. Shareholders sued the company last year after The New York Times reported the company’s board had approved a US$90-million exit package for Andy Rubin—a top executive and co-creator of the Android operating system—after he allegedly sexually harassed an employee. (The New York Times)
Talking point: Under the terms of the agreement, employees will no longer be compelled to settle disputes with staff or managers via private arbitration. That, along with getting rid of the rampant use of non-disclosure agreements, was a key demand from employees. Alphabet also agreed to “limit confidentiality restrictions” when settling harassment and discrimination cases, and banned workplace romances between managers and their staff. One key source of tension between management and employees was the exit packages received by executives like Rubin, who were quietly asked to leave the company in exchange for tens of millions. The settlement compels Alphabet not to dish out severance or other compensation to employees that are being investigated for sexual misconduct or harassment.