Microsoft's announcement of no salary hikes for the year has stirred up anger among numerous employees. The discontent reached the spotlight when a tech worker's Twitter post labeled the decision as a 'slap in the face'. However, hope has been reignited as Microsoft's CMO (Chief Marketing Officer) revealed a potential avenue for change and salary increases.
As reported by Fortune, Christopher Capossela addressed the employees in an internal discussion, outlining the means through which they can secure a pay raise.
According to the Fortune report, Capossela conveyed in an internal communication that the key to elevating everyone's overall compensation lies in efforts to boost the company's stock price. He emphasised, "The most important lever for almost all our employees' compensation upside is the stock price. So great quarterly results contribute to making the stock attractive, which in turn drives everyone's total compensation up.”
The report further indicated that the company's stock price has already experienced a significant increase of 33 per cent this year.
Just a few days ago, Satya Nadella conveyed Microsoft's decision to withhold any salary increases for the current year in an internal email, which was viewed by Insider. The email acknowledged that "this year, the economic conditions are very different across many dimensions" and emphasised that Microsoft does not make such decisions without careful consideration.
Consequently, the company clarified that it would be implementing salary increases for specific hourly or equivalent positions, while full-time salaried employees would not receive any pay raises this year.
Furthermore, Microsoft pledged to sustain its investment in employees by offering bonuses and stock awards. The company reiterated its commitment to furnishing its workforce with avenues for advancement and personal development.