Technology firm Microsoft has announced that it will award its non-executive employees a one-time performance-based cash award of up to 25% of their annual bonus.
According to a memo distributed to employees, salaried and hourly workers at the senior director level and below will be eligible for the award, with amounts depending on role and bonus size. Junior-level employees can receive as much as 25% of their bonus, while senior directors can get up to 10%.
The firm decided to reward staff with the payment to show recognition for their contribution towards its financial performance over the 2024 fiscal year, attributing it to the focus, creativity and collaboration of its workforce and its collective efforts.
Last week, Microsoft reported that its revenue increased by 15% from last year. Microsoft shares were up 26% in the past year, outperforming the Nasdaq by 6%.
Kathleen Hogan, chief people officer at Microsoft, stated in the memo: “All Microsoft employees in levels 67 and below, including hourly and equivalents, who receive FY24 rewards will be eligible to receive a special one-time only cash award in addition to their annual rewards. This will scale based on the employee’s impact. Those at higher levels, such as 67, will receive a payment roughly equal to 10% of their annual bonus, while those at lower levels such as 61 and below will receive a payment roughly equal to 25% of their annual bonus.
“The senior leadership team and I want to recognise the tremendous work and impact of our people who delivered a terrific year of solid execution and world-class innovation. As we considered this award, our goal was to ensure that everyone eligible receives a meaningful amount at all levels, and thus the differences in percentage of bonus based on level.”
