Microsoft to hike pay, annual stock options

The IT major is doubling its budget for merit-based increments and increasing the yearly stock options by 25%


Given the volatility of the labour market, Microsoft has decided to make long-term investments in its employees. It has almost doubled its budget for merit-based pay hikes. It will also increase the annual stock options by 25 per cent.

Satya Nadella, CEO, Microsoft, hopes these measures will not only retain staff, helping them deal with inflation, but also attract quality talent.

Nadella, in an official communication to employees admits that the Company’s ace talent is much sought after in the labour market, and that these measures are a way of appreciating the hard work and efforts of its employees.

The Company has realised that employees who have left for greener pastures have done so for better compensation and benefits.

Microsoft had already increased the budget for promotions and rolled out a special stock award to recognise the efforts and impact made by its high performers.

Employees’s compensation at Microsoft comprises basic salary, bonus and stock. The stock hike will be applicable to Level 67 employees, that is, senior managers and below.

The increments in salary budgets will differ from country to country, based on market demands.

At a time when Microsoft is hiring actively amidst efforts to grow Azure, Xbox, and other platforms, this increase in compensation budget will facilitate retention of precious talent. Also,with this move, it is estimated that freshers joining as software engineers may expect to earn about $163,000.

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