Microsoft will pay a one-time cash bonus of up to 25% of annual bonus | Wilnesh News

Microsoft It said on Tuesday it would pay rank-and-file employees a one-time, performance-based cash bonus of up to 25% of their annual bonus.

Microsoft Chief People Officer Kathleen Hogan said in a memo to employees that salaried and hourly employees at the senior director level and below will be eligible for the award. Junior employees can receive up to 25% of their bonus and senior directors can receive up to 10% of their bonus.

Hogan said in the memo that Microsoft leadership wanted to recognize employees for a good fiscal year. Microsoft reported fourth-quarter results after the close on Tuesday and said revenue grew 15% from a year earlier. For the full fiscal year ended June 30, revenue grew about 16%, up from 7% in fiscal 2023.

As of Tuesday’s close, Microsoft shares were up 26% in the past year, outperforming the Nasdaq, which was up 20%.

Hogan said the additional expenditures vary in size because they are designed to make sense on different levels.

Despite the Federal Reserve’s aggressive interest rate hikes starting in 2022, the labor market remains resilient and Microsoft is working to retain employees and recruit talent.

Top tech companies generally offer higher salaries to software engineers of all experience levels than Microsoft, according to data compiled by a website. Levels are for reference only.

Microsoft executives may also be trying to boost morale after a period of layoffs. In June, Microsoft said it would lay off employees working on mixed reality, including virtual and augmented reality, after cutting about 10,000 jobs in early 2023.

In 2022, as central banks raised interest rates to curb inflation, Microsoft increased its stock allocation to employees and nearly doubled its budget for merit-based pay increases for senior directors and below. The next year, after revenue growth fell to single digits, Chief Executive Satya Nadella told employees the company would not raise wages.