17 October 2023 , 11:21
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Leaked pay guidelines reveal that Microsoft employees can be awarded over $1million as a hiring bonus, $1million in stock, in addition to over $300,000 as a base salary.
The banding system sees new hires receiving different levels of pay ranges for base pay, hiring bonuses, and annual stock awards. According to Business Insider, the guidelines were published earlier this year and are used by hiring managers to decide how much to offer new hires, according to a person with direct knowledge of the process.
The guidelines also show the vast difference between the lower tiers of salaries compared to the highest. Some US-based Microsoft employees in San Francisco and New York are paid more because they live in higher cost-of-living areas and some “highly skilled” roles within engineering, also receive more compensation.
The highest pay package in these guidelines awarded a $361,500 salary, $1.2million as a hiring bonus, and about $1million in annual stock awards. The lowest was a $42,500 salary, with no hiring bonus and no guaranteed stock award. Although pay at Microsoft varies between locations and it is unclear how these particular boundaries apply to employees, this information does show the extraordinary bonuses some employees receive.
In the highest band employees receive a $1.2million hiring bonus, and about $1million in annual stock awards (AP)Even though levels vary by field and location, generally, "senior" positions start at level 63, "principals” start at level 65, and "partners" start at level 68, according to insiders. Not all types of roles go up to level 70, but in engineering, an employee at this level would be considered a "distinguished engineer.'" There's also a level 80 for a "technical fellow," which is one of the highest-ranking executives at the company.
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After employees expressed dissatisfaction with pay compared to competitors such as Amazon Microsoft granted an across-the-board compensation raise for levels 67 and lower through larger stock grants. But earlier this year, as the US economy suffered, Microsoft froze base pay raises and cut its budget for bonuses and stock awards. Microsoft's pay guidelines for job offers are as follows:
Level 70:
Base pay: $231,700 to $361,500
On-hire stock awards: $310,000 default to $1.2 million with approval
Annual stock award range: $0 to $945,000
Level 69:
Base pay: $202,400 to $316,000
On-hire stock awards: $235,000 default to $1.1 million with approval
Annual stock award range: $0 to $750,000
Level 68:
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Base pay: $186,200 to $291,000
On-hire stock awards: $177,000 default to $1 million with approval
Annual stock award range: $0 to $490,600
Level 67:
Base pay: $171,600 to $258,200
On-hire stock awards: $168,000 default to $700,000 with approval
Annual stock award range: $0 to $336,000
Level 66:
Base pay: $157,300 to $236,300
On-hire stock awards: $75,000 default to $600,000 with approval
Annual stock award range: $0 to $160,000
Level 65:
Base pay: $144,600 to $216,600
On-hire stock awards: $36,000 default to $300,000 with approval
Annual stock award range: $0 to $90,000
Level 64:
Base pay: $125,000 to $187,700
On-hire stock awards: $24,000 default to $250,000 with approval
Annual stock award range: $0 to $60,000
Level 63:
Base pay: $113,900 to $171,500
On-hire stock awards: $17,000 default to $200,000 with approval
Annual stock award range: $0 to $44,000
Level 62:
Base pay: $103,700 to $156,400
On-hire stock awards: $11,000 default to $125,000 with approval
Annual stock award range: $0 to $32,000
Level 61:
Base pay: $92,600 to $138,100
On-hire stock awards: $6,500 default to $75,000 with approval
Annual stock award range: $0 to $24,000
Level 60:
Base pay: $83,500 to $125,000
On-hire stock awards: $4,500 default to $50,000 with approval
Annual stock award range: $0 to $16,000
Level 59:
Base pay: $74,400 to $110,800
On-hire stock awards: $3,000 default to $30,000 with approval
Annual stock award range: $0 to $12,000
Level 58:
Base pay: $70,300 to $92,600
On-hire stock awards: $2,500 default to $20,000 with approval
Annual stock award range: "By career stage"
Level 57:
Base pay: $63,800 to $83,000
On-hire stock awards: $1,500 default to $10,000 with approval
Annual stock award range: "By career stage"
Level 56:
Base pay: $60,700 to $77,900
On-hire stock awards: $1,500 default to $10,000 with approval
Annual stock award range: "By career stage"
Level 55:
Base pay: $55,200 to $71,300
On-hire stock awards: N/A
Annual stock award range: "By career stage"
Level 54:
Base pay: $51,600 to $67,000
On-hire stock awards: N/A
Annual stock award range: "By career stage"
Level 53:
Base pay: $46,600 to $59,700
On-hire stock awards: N/A
Annual stock award range: "By career stage"
Level 52:
Base pay: $42,500 to $54,600
On-hire stock awards: N/A
Annual stock award range: "By career stage"