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Microsoft CEO Satya Nadella tells employees that pay increases are coming

Microsoft CEO Satya Nadella tells employees that pay increases are coming

Microsoft CEO Satya Nadella speaks during the annual Microsoft Shareholder Meeting at the Meydenbauer Center on November 28, 2018 in Bellevue, Washington. Microsoft recently overtook Apple, Inc. To become the most traded company in the world by value.

Stephen Brashear | Getty Images News | Getty Images

Microsoft Chief Executive Officer Satya Nadella told employees on Monday that the company is raising compensation as the labor market tightens and employees face rising inflation.

A company spokesperson confirmed the wage increase, which was reported earlier by Jake Wire.

“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,” the spokesperson told CNBC in an email. “This increased investment in our global compensation reflects our ongoing commitment to providing a highly competitive experience for our employees.”

economic inflation It jumped 8.3% in April, still close to a 40-year high. Meanwhile, the US economy continues to do so Add Jobs And unemployment is steadily declining, reaching 3.6% last month. Tech companies have been responding to salary bumps.

Google Parent the alphabet he is Modify its performance system in a way that will bring higher wages to the workers, while Amazon committed to more than double The maximum basic wage for corporate employees.

Nadella told employees that the company is “nearly doubling the global merit budget” and allocating more money to people early and mid-career and those in specific geographies. He said the company is raising annual equity ranges by at least 25% for employees at level 67 and below. It includes several levels in the company Hierarchy of software engineering roles.

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In the first quarter, Microsoft increased research and development costs, which include salary costs and stock-based compensation, by 21%. The company has boosted spending on cloud engineering as Microsoft tries to keep pace with Amazon Web Services. Research and development growth accelerated for five consecutive quarters.

While the biggest tech companies were raising their salaries to try to retain talent, some of the smaller companies were laying off workers as the war in Ukraine and shortages of supplies put pressure on their businesses. Carvana And Robinhood Among them cut staff.

Watch: Jefferies Chief Analyst Brent Thill says positive about long-term cloud stocks