Microsoft Memo Leak Reveals Guidance For Managers: Connect 'Rewards' To Employee 'Impact,' Avoid Salary Freeze Talks
Portfolio Pulse from Benzinga Neuro
Microsoft Corp. has altered its employee compensation strategy, freezing salaries, reducing bonus budgets, and increasing the proportion of stock awards. During performance reviews, managers were instructed to focus on individual performance and its impact on rewards, rather than discussing the company's budget. The company's Chief People Officer, Kathleen Hogan, also instructed managers to award fewer “exceptional rewards,” which lead to higher pay and bonuses.

August 29, 2023 | 5:34 am
News sentiment analysis
Sort by:
Ascending
NEUTRAL IMPACT
Microsoft's new compensation strategy could impact employee morale and productivity, which could indirectly affect the company's performance. However, the increased focus on stock awards could make employees more invested in the company's success.
While the new compensation strategy could potentially demotivate employees due to the freeze on salaries and reduction in bonus budgets, the increased proportion of stock awards could incentivize employees to work towards the company's success. This could have a neutral impact on the company's stock in the short term.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 100