CEO Satya Nadella gives employees good news amidst historic inflation
Microsoft workers can expect higher compensation from their employer, according to reports.
Satya Nadella, the company’s CEO, told employees via email on Monday about the tech company’s plans to nearly double its global budget for merit-based salary increases.
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, according to a GeekWire report, citing a copy of the memo it obtained.
Microsoft is also looking to increase its range for annual stock-based compensation by at least 25% for employees at the senior director level and below, reported GeekWire.
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“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,” Nadella said in the memo. “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.”
The company’s announcement came after inflation jumped 8.3% in April, remaining close to a 40-year high, according to reports. And as record inflation hits the United States, CEOs are raking in the dough, according to one expert.
"I think it'll be startling for people when they learn more about how CEOs are really profiting — and profiteering — off of it," said Sarah Anderson, program director for the Global Economy Project at the Institute for Policy Studies, according to a CNN report.
The CEO bonus at the 10 top tech companies soared 400% on average between 2020 and 2021, according to data gathered and calculated by Finbold. Tesla CEO Elon Musk is far ahead atop the list of the highest-paid CEOs and executives in 2020 with $6,658,803,818 total compensation that year, according to a Bloomberg report.
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Meanwhile, more than half of employees (51%) were more stressed about their finances in 2021 than ever before.
In April, Verizon and Cisco also announced they are raising employee pay to battle historic inflation.
However, nearly one in four business leaders are not making any changes to pay in response to inflation, according to a report from Bloomberg, citing a poll by Gartner Inc. conducted late in February. And seven in 10 (70%) employees already admitted to worrying about or spending time dealing with money at work, irrespective of their position or level of income, according to a previous report.
“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. “This increased investment in our worldwide compensation reflects the ongoing commitment we have to providing a highly competitive experience for our employees.”