I can see the headlines now: "Is Google's Generous Post-Death Policy the New Unfunded Pension Liablity?" EDIT: Google's policy is not life insurance. The post

I can see the headlines now: "Is Google's Generous Post-Death Policy the New Unfunded Pension Liablity?" EDIT: Google's policy is not life insurance. The post-death salary payments appear to come out of Google's pockets, not the pockets of an insurer or reinsurer. /EDIT This may help Google compete right now, but in the long run, it will be the same drain on the company's resources that pensions were for Detroit. When Detroit was giving out pensions like candy, it was the top-grossing industry in the world; they were making margins close to what Apple makes today. It helped them recruit the best and brightest talent. But then a funny thing happened: the market corrected itself. Cars stopped earning bank. Margins fell, and even the biggest carmakers started going out of business. We're in the glory days of the web industry, the only difference being that most websites don't even make money before getting sold. But investors will catch on, eventually, like they always do. And when that happens, policies like this will start to go away, just like they did for Detroit.