There is good news for Microsoft employees during the increment season. Its chief executive officer (CEO), Satya Nadella, has announced plans to “nearly double" the company's budget for employee salary increases and boost the range of stock compensation it gives some workers by at least 25 per cent, according to a report in GeekWire. This decision has been taken to retain employees and help them cope with inflation, the report further said.
The doubling of the global budget will be done for merit-based increased wages, according to an email Mr Nadella sent to Microsoft staff, GeekWire report said.
Mr Nadella told the Microsoft will award more money to employees in their early and mid-career stages, as well as those in specific geographic locations.
“People come to and stay at Microsoft because of our mission and culture, the meaning they find in the work they do, the people they work with, and how they are rewarded,” a Microsoft spokesperson told CNBC in an email when asked about the move.
“This increased investment in our worldwide compensation reflects the ongoing commitment we have to providing a highly competitive experience for our employees,” the spokesperson added.
Microsoft is increasing annual stock ranges for employees at level 67 and below by at least 25 per cent, also confirmed by Bloomberg.
GeekWire said it accessed a copy of the memo in which Mr Nadella said, "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.”
“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,” he added.
Back in January, Google had hiked the salaries of four of its top executives. Their base salaries were hiked from $650,000 to $1 million.
Microsoft Corporation is a global technology company based in Redmond, Washington, that manufactures computer software, consumer electronics, personal computers, and associated services.
The Microsoft Windows operating system, the Microsoft Office suite, and the Internet Explorer and Edge web browsers are among its most well-known software products. The Xbox video game consoles and the Microsoft Surface range of touchscreen personal computers are the company's major hardware offerings.