Leaked documents reveal Microsoft staff pay data

Salary ranges, bonus information and stock awards among leaked info

Microsoft's confidential salary guidelines have been leaked online, providing a rare glimpse into the technology giant's intricate pay structure.

The leaked data encompass details on base salary, hiring bonuses and annual stock awards, all serving as a crucial tool for Microsoft's hiring managers as they extend job offers to prospective employees.

The leaked documents, first published earlier this year and recently viewed by Business Insider, reveal a significant disparity in compensation between higher- and lower-tier employees.

As always expected, but now confirmed, Microsoft appears not to have a uniform, company-wide standard for per-level pay across all units. Rather, compensation varies significantly based on the specific role and geographic location.

For example, employees based in high-cost-of-living areas like New York and San Francisco receive higher compensation to account for their elevated living expenses.

In addition to location-based variations, highly skilled roles within engineering fetch more substantial compensation.

Microsoft employs a tiered system of levels to denote employee seniority, with "senior" positions at level 63, "principal" positions at level 65, and "partner" roles at level 68.

For individuals at the highest Level 70, base pay ranges from $231,700 to $361,500.

These top-tier employees are also eligible for hiring bonuses, which can range from $310,000 to $1.2 million, and annual stock awards worth around $1 million.

In stark contrast, the lowest tier (Level 52) features a base salary of $42,500, devoid of both a hiring bonus and a guaranteed stock award.

Not all roles extend to Level 70, but in the engineering field, reaching Level 70 marks an employee as a "distinguished engineer."

At the pinnacle of the hierarchy, level 80 is reserved for "technical fellows," a position typically occupied by one of the company's highest-ranking executives.

Interestingly, the guidelines do not include information on cash bonuses, which are normally calculated as a standard percentage based on the level.

Insiders claim that, at the partner level, cash bonuses can amount to as much as 90% of base pay.

In 2022, during a robust economic period, Microsoft granted a company-wide compensation hike for employees at levels 67 and lower, primarily in the form of larger stock grants.

This decision was prompted by increasing internal discontent regarding compensation relative to competitors, particularly Amazon, and was aimed at retaining talent.

However, in a shift of direction, earlier this year, Microsoft took the unprecedented step of freezing base pay raises and reducing its budget for bonuses and stock awards.

The company took this decision in light of the economic downturn in the United States.

LinkedIn, the Microsoft-owned professional networking platform, this week cut its workforce by 668 employees in an effort to streamline its decision-making processes.

This action comes in addition to the 700 employees dismissed from LinkedIn back in May.