Microsoft to "Nearly Double" Salaries and Stock Compensation

Microsoft intends to "nearly double" its global budget for employee salary increases as well as increase its annual stock options by at least 25%. The move is caused by the company's efforts to retain staff and help its staff to cope with inflation.

In an internal letter to the company's employees (via GeekWire), Microsoft CEO Satya Nadella detailed the company's plans.

"We see that our talent is in high demand, because of the amazing work you do to empower our customers and partners," Nadella wrote. "Across the leadership team, your impact is both recognized and deeply appreciated – and for that, I want to say a big thank you. That’s why we’re making long-term investments in each of you."

The Microsoft head noted that the company is "nearly doubling" its merit budget. He said that it will vary by country, and the most significant increases in pay will be seen by "early to mid-career" employees, meaning that senior managers and everyone below are expected to have a raise in salary. Meanwhile, General managers, executives, VPs, and CVPs will not be included in the budget.

Microsoft didn’t detail pay figures, so it’s unknown what the new compensation levels will be. However, according to the Glassdoor website, a new graduate working as a software engineer at the company is estimated to make around $163,000.

The company announced the changes as its 2022 fiscal year draws to a close, ending June 30.

In February, another giant, Amazon, announced it would more than double the maximum base salary raising it from $160,000 to $350,000, a move to retain engineers, developers, and other tech employees in a highly-competitive market.

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