Microsoft to make huge compensation boost in effort to keep top talent
Microsoft (NASDAQ:MSFT) said Monday that it would "nearly double" its salary budget and increase the range of employee stock compensation by at least 25% as it looks to reward a workforce dealing with rising inflation and remain competitive with other tech companies in the battle for top talent.




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In a statement obtained by Bloomberg, Redmond, Washington-based Microsoft (MSFT) said it had "factored in the impact of inflation and rising cost of living," but the boost in compensation is also a sign that it appreciates its "world-class talent who support our mission, culture and customers and partners.â
Microsoft (MSFT) shares closed Monday with a gain of 0.2%.
Microsoft (MSFT) did not immediately respond to a request for comment from Seeking Alpha.
Several third-party estimates, including ZipRecruiter and Glassdoor, note that there is a wide variety in Microsoft (MSFT) employee salaries, with pay dependent upon job function, and software engineers some of the highest paid in the company.
According to Payscale, the average salary of a Microsoft (MSFT) employee is $122,987, annually, along with a $14,000 bonus.
A number of different tech companies have had to boost compensation in recent months amid the war for talent.
In December, Apple (AAPL) handed out stock bonuses worth up to $180,000 to several of its top-tier talents to prevent them from defecting to other companies, notably Meta Platforms (FB). And, in April, Apple (AAPL) handed out a second round of stock bonuses, worth up to $200,000, to keep certain employees from leaving the company for other opportunities.
Last week, Wedbush Securities said Microsoft (MSFT) and Apple (AAPL) were its top picks in the tech sector, noting that the recent correction in the stock market has caused a bifurcation, resulting in "haves and have nots."