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Ballmer promises better compensation for Microsoft employees

updated 04:55 pm EDT, Thu April 21, 2011

Company shifting away from stock awards

Microsoft CEO Steve Ballmer has reportedly circulated a memo detailing a variety of changes to the company's compensation policies. The executive promises to increase compensation for employees at all levels, with a particular focus on workers involved in "early and mid-level R&D," or those located in specific regions.

Many workers can also expect to see a slight shift away from stock awards, as the company will put more of those funds directly into the base salary for "more cash up front." Senior workers and executives will continue to receive a significant portion of their compensation in the form of stock, maintaining the incentive for strong performance.

Aside from the changes to the pay structure, the company is also said to be overhauling its review and rating methods. The new system will be based on a "single performance rating with clear rewards," with a set compensation tied to each rating at every level.

Microsoft staffers can expect the changes to occur in September. [via GeekWire]

by MacNN Staff



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