Microsoft plans to “nearly double” its budget for employee salary increases while also increasing the range of stock compensation by at least 25%.
According to Microsoft CEO Satya Nadella, the move is necessary because of the high demand for its skilled workers.
The move mainly affects “early to mid-career employees.” Microsoft’s pay package consists of base salary and bonus shares, and the changes apply to a significant portion of the company’s workforce, which stood at 181,000 as of June 30, 2021.
The stock increase will apply to level 67 employees within the company or below. The increase in salary budget will vary from country to country, and “the most meaningful increases will be focused where the market demands.”
“As we approach our annual total rewards process, we are making a significant additional investment this year to compensate our employees globally. While we have factored in the impact of inflation and the rising cost of living, these changes also recognize our appreciation for our world-class talent who support our mission, culture, customers and partners,” Microsoft said.
The sources for this piece include an article in Bloomberg.