The month of increments has arrived, and there is some good news for Microsoft employees: they will be getting a raise soon. Microsoft Corp. plans to “almost double” its budget for employee salary hikes and raise the range of stock compensation it gives select workers by at least 25% in an effort to retain personnel and assist people cope with inflation, according to Bloomberg.
“Time and time again, we see that our talent is in high demand, because of the amazing work you do to empower our customers and partners. Among 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,” Nadella’s email to his employees, which was obtained by Geekwire, read.
Microsoft isn’t the only corporation to announce a significant wage increase. Amazon increased the highest base compensation for corporate and IT staff from $160,000 to $350,000 in February. To attract top talent and maintain existing staff, better pay was offered.
Employees were also told by Nadella that the corporation is making “a considerable additional investment in our compensation programs,” which is far over its regular budget.
“Specifically, we are nearly doubling the global merit budget. Merit budgets will vary by country, based on local market data, and the most meaningful increases will be focused on where the market demands and on early to mid-career levels. We are also increasing the annual stock ranges by at least 25 percent for all levels 67 and below,” he stated.
As a result, the raise would primarily affect employees who have recently joined the company as well as those who are in the middle of their careers.
General managers, vice presidents, and other top executives who have reached Microsoft’s “partner level” may not be promoted as quickly as ordinary employees.
Google increased the pay of four of its senior executives in January. Their starting pay was increased from $650,000 to $1 million. Chief Financial Officer Ruth Porat, senior vice president Prabhakar Raghavan (in charge of Google search), senior vice president and chief business officer Philipp Schindler, and Kent Walker, president of global affairs and chief legal officer, are among those who have gotten raises.
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