Microsoft will raise employee pay through merit salary increases and larger stock grants, CEO Satya Nadella wrote in an email to employees on Monday. The decision follows similar salary bumps from other big tech companies.
Nadella announced that the company is doubling the global budget for merit increases, as well as increasing the range for stock-based compensation by 25% for employees under the senior director level. Business Insider reports the changes are effective Sept. 1.
Despite falling tech stocks, growing layoffs and hiring freezes, the job market is still favorable for engineers and other corporate tech workers. Amazon doubled its base compensation from $160,000 to $350,000 earlier this year, and doled out a record number of stock grants. Nadella acknowledged the competitive talent market in his email to staff announcing the change.
“Time and time again, we see that our talent is in high demand, because of the amazing work you do to empower our customers and partners,” Nadella wrote, according to GeekWire. “Across the leadership team, your impact is both recognized and deeply appreciated — and for that I want to say a big thank you. That’s why we’re making long-term investments in each of you.”