Microsoft Will Boost Pay and Stock Compensation to Retain Employees
A few days ago, Microsoft CEO Satya Nadella announced that the company would ‘nearly double’ their budget for merit-based salary raises. The Seattle-based tech giant also stated that it would increase its stock-based compensation by at least 25 per cent. The move made by Microsoft was due to the brawl that big tech companies were engaged in to retain their talent force.
But the ploy ended up working better than anticipated. While publications like Wall Street Journal were careful to say that Microsoft ‘boosted their pay,’ most Indian media outlets carried headlines stating the company was ‘nearly doubling salaries.’ Needless to say, there is a massive difference between the two.
Employees from the company were quick to distinguish myth from fact. The fact was simply this—there was a possibility that employees who had performed well according to their managers would receive a bigger chunk as a hike. The doubled budget did not indicate that all employees would be paid twice their current salaries as per a rule of thumb. While some tweeted placing the blame squarely on the shoulders of the faulty news machinery, others joked about the deceptive headlines.
