Internal Documents Reveal Microsoft's Employee Pay Determination Process, Drawing Comparisons To 'Stack Ranking'
Portfolio Pulse from Benzinga Neuro
Microsoft Corporation (NASDAQ:MSFT) has a controversial approach to determining employee compensation that some insiders liken to the notorious ‘stack ranking’ system. The company's review process requires managers to distribute employees across a scale, adjusting individual rankings based on the team’s overall performance. This approach has been rolled out alongside a new rating system this year, triggering comparisons to the ‘stack ranking’ system, which was officially abandoned in 2013 due to internal dissatisfaction.

September 14, 2023 | 9:19 am
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Microsoft's controversial approach to employee compensation could potentially lead to internal dissatisfaction and affect the company's reputation.
The news reveals a controversial approach to employee compensation at Microsoft, which is likened to the notorious 'stack ranking' system. This could potentially lead to internal dissatisfaction among employees, which could in turn affect the company's reputation and productivity. This negative sentiment could potentially impact the company's stock price in the short term.
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