Microsoft has to spend significantly more on bonuses and stock options to retain its experts. Meta had offered some twice the salary. Microsoft Chief Executive Satya Nadella has announced plans to increase bonuses and salaries. The Wall Street Journal reports, citing a person familiar with the announcement. Nadella said on May 16, 2022, that the software giant plans to nearly double its global budget for performance-based pay increases for employees. The annual share component will also be increased by at least 25 percent. The online magazine GeekWire first reported on the increase in income.
US inflation hit its highest level in four decades in April. The biggest price drivers in the US in March 2022 were fuel, rent, and groceries. The latter became around ten percent more expensive.
Meta poached Microsoft people with twice the salary
"This increased investment in our global compensation reflects our ongoing commitment to providing employees with a highly competitive experience," a Microsoft spokeswoman told The Wall Street Journal.
At the end of 2021, tech giant Google announced a new cash bonus plan that allows employees to receive bonuses of almost any amount for a variety of reasons. In February, Amazon announced it would double the payment cap for employees.
Microsoft previously came under pressure because Facebook owner Meta Platforms poached a large number of experts on Microsoft's augmented reality HoloLens team. As the Wall Street Journal learned from informed circles, Meta was willing to double the salary of some Microsoft employees in the event of a change.