Microsoft To Boost Pay, Stock Compensation To Beat Inflation, Compete With Other Big Tech

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  • Microsoft Corp MSFT looks to “nearly double” its budget for employee salary increases and boost the range of stock compensation for some workers by at least 25%, to retain staff and help people manage inflation, Bloomberg reports.
  • Microsoft had 181,000 employees as of June 30, 2021. The move will primarily cater to “early to mid-career employees.” 
  • The stock increase will apply to employees at Level 67 in the company’s internal scale or below. Level 67 is the last tier before an employee becomes a company partner. 
  • The salary budget increases will vary by country, and “the most meaningful increases will be focused where the market demands.”
  • Apart from confronting cost-of-living increases and a tight Seattle housing market, Microsoft is locked in a fierce battle for talent with companies like Amazon.com Inc AMZNAlphabet Inc GOOG GOOGL Google, Facebook owner Meta Platforms Inc FB, and startups. 
  • Fields like cybersecurity, artificial intelligence, the metaverse, and cloud computing have been incredibly competitive. 
  • Moreover, the pandemic has led many workers to relocate and reconsider employment options.
  • Amazon in February disclosed more than doubling the maximum base salary it pays employees to $350,000 from $160,000 to cope with a competitive labor market.
  • Price Action: MSFT shares traded higher by 1.58% at $265.64 premarket on the lat check Tuesday.
  • Photo via Wikimedia Commons
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Posted In: NewsTechMediaBriefs
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