They would have been much better off just eliminating the holiday gift with a heartfelt letter from Larry explaining that he didn't want a creeping culture of entitlement and we were all aware we were compensated handsomely anyways so happy holidays, you'll get your annual bonus soon anyways. Pretending the charity thing was a gift was a bit weird. At that point I was giving 5-10x that amount in my own cash to charities anyways.
It's handled a bit better now, because you get to choose the charity, and it's accompanied by a good matching charity drive program etc.
https://www.npr.org/sections/money/2012/07/13/156737801/the-...
Step 2. choose that charity and pick yourself for an adoption
To me the whole idea of a gift where the employer donates money to charities in a name of a employee seems like "The Human Fund" sketch from Seinfeld rather than anything that would actually exist in a real world.
Even years later, there was still bitterness among the employee base about the holiday gift. It was a bit mystifying to me (as I never had the expectation of a $400 electronic for a holiday gift from my employer), but really shows the power of anchoring. Once people have an expectation for some reward or benefit, any downward deviation from that expectation is met with great distress.