Microsoft CEO Satya Nadella Announces Compensation Increases to Keep High-Value Talent From Jumping Ship

In the current economic landscape, the value of talented employees has never been higher. That makes finding and keeping talent one of the biggest challenges facing companies of all industries and sizes. For Satya Nadella, Chief Executive Officer of Microsoft, making a long-term commitment to his company’s skilled workforce is worth paying for. In an email to Microsoft employees, the CEO announced plans to double its global budget for merit-based salary increases and to increase annual stock-based compensation by at least 25% for the senior director level and below.

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This follows similar moves by competitors, including Amazon, to increase overall compensation for its specialized workers, especially in tech-forward positions, through both base pay and bonuses. In his memo, Nadella expresses gratitude toward Microsoft’s valuable talent pool while making sure to highlight the company’s financial commitment to its workforce. The announcement comes close to the end of the fiscal year — June 30, 2022 — when rewards-based compensation for employees is determined for fall remittance. As far as Nadella is concerned, long-term financial investments into his company’s workforce are a top priority.