According to a Geekwire report, Microsoft will nearly double its annual budget for merit-based salary increases and make other compensation improvements.
“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,” Microsoft CEO Satya Nadella writes in an internal memo that was obtained by GeekWire. “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.”
In addition to increasing its budget for merit-based salary increases, Microsoft will also increase the range of stock-based compensation by at least 25 percent for employees at the senior director level and below, the memo notes.
“Merit budgets will vary by country, based on local market data, and the most meaningful increases will be focused where the market demands and on early to mid-career levels,” Mr. Nadella explained to employees. “We are also increasing Annual Stock ranges by at least 25 percent for all levels 67 and below [meaning employees up to and including senior directors].”
The compensation changes do not impact general managers, vice presidents, and other upper-level executives.