An American multinational technology corporation, Microsoft employees aren’t getting salary raises this year. Chief Marketing Officer Chris Capossela has suggested to employees the best way to boost pay is- by working to push the company’s stock higher.
Microsoft’s Chief Marketing Officer said in an internal communication to employees, “The most important lever for almost all of 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”, Chris Capossela added.
“Microsoft still continues to invest heavily in its people, and its data centre capacity, to hopefully position it well for the artificial intelligence (AI) transformation,” said Chris Capossela added.
There have been various reports that have also indicated that the company’s stock price has already experienced a significant increase of 33 percent this year.
Recently, Microsoft has not given a raise in the salary of employees this year for full-time employees. The discontent reached the spotlight when a tech worker’s Twitter post labeled the decision as a ‘slap in the face.’
A spokesperson for the tech giant said, “We recognize that navigating both a dynamic economic environment and a major platform shift requires us to make critical decisions in how we invest in our people, our business, and our future.”
According to reports, Microsoft was reducing its budget for bonuses and stock awards. The company’s CEO Satya Nadella has informed the employees in an internal email.
The report quoted Nadella saying, “Last year, we made a significant investment in compensation driven by market conditions and company performance, nearly doubling our global merit budget…this year the economic conditions are very different across many dimensions.”
Earlier in January, Microsoft conducted a third round of layoffs. These layoffs are part of “10,000 job cuts” that were announced by the company to be conducted worldwide due to the global economic slowdown.
