Report: Here’s how much Microsoft employees make according to a leak

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OCTOBER 17, 2023

REDMOND, WASHINGTON – JULY 17: A pedestrian walks a sign on Microsoft Headquarters campus July 17, 2014 in Redmond, Washington. Microsoft CEO Satya Nadella announced, July 17, that Microsoft will cut 18,000 jobs, the largest layoff in the company’s history. (Stephen Brashear/Getty Images) Stephen Brashear/Getty Images

As one of the richest companies in the world, it’s reasonable to expect a degree of intrigue around Microsoft  (MSFT).

The tech company, which has a nearly $2.5 trillion market cap, is routinely ranked one of the top places to work, and for good reason.

Comparably, a workplace data and insight firm, ranked Microsoft the number one best company to work for in 2022 with an overall rating of A-.

In 2023, it has already received the following awards: 

  • Best Company Perks & Benefits.
  • Best Company Compensation.
  • Best Company Leadership.
  • Best CEOs for Diversity.
  • Best Engineering Team.
  • Best Global Culture.
  • Best Company Outlook.

Of course, what many folks are curious about is the second award, which discusses compensation.

“The combination of everything included in the compensation package – health, financial, emotional, physical and intellectually –benefits the person as a whole so they can bring their best self to work every day,” one reviewer wrote of working at Microsoft.

The question is, though, just how much is Microsoft paying its employees? Is it fair across all teams? And is it competitive for its industry?

Alleged memo gives Microsoft pay insight

A recently published memo, first obtained by Insider, claims to give clarity into just how much Microsoft is paying its employees.

Interestingly, the company divides its teams, employees, and seniority into different bands and cohorts, which all depend on a variety of factors.

Insider points out that, when extending an offer to a new hire, for example, Microsoft takes location heavily into account. A new hire living in San Francisco might be compensated more than a hire in Missouri, given the higher costs of living in the Bay Area.

Microsoft also divides its employees by rank, which largely depends on experience and superiority. In most cases, ranks go as high as 70, but some isolated roles might go up to 80 depending on field or experience.

Here’s a breakdown of what that might look like:

  • Senior: Level 63.
  • Principal: Level 65.
  • Partner: Level 68.

Engineers typically didn’t exceed 70, though someone with the title “distinguished engineer” might fetch that number.

Level 70, which is typically the highest level, might get a range of $231,700 to $361,500 in base pay — meaning before stock or other bonus-based compensation.

The highest comp package reported in the memo includes the following breakdown:

  • $361,500 base salary.
  • $1.2 million hiring bonus.
  • $1 million in yearly stock awards.

The lowest tiered employee, on the other hand, was shown to make just over $42,000.

Microsoft has not confirmed the existence or verity of the pay memo.

A purported email from CEO Satya Nadella to employees said that pay raises for certain employees would be frozen for the year, citing economic headwinds.

“We are clear that we are helping drive a major platform shift in this new era of A.I., and doing so in a dynamic, competitive environment while also facing global macroeconomic uncertainties,” Nadella wrote. “While we will have salary increases for certain hourly or equivalent roles, we will not have salary increases for full-time salaried employees this year.”


Courtesy:  TheStreet