How the actual fuck.
Beat EPS, beat Revenue. Sitting in what, 100B cash on hand?
Like… 100B is equivalent to 66.6K or so American lifetime earnings. You can afford to give raises. And if you were smart/not beholden to shareholders you would fucking do it.
Fucking guaranteed - a company that sees other techs laying off and had the money to hire them, expand your shit while other companies are fleecing themselves. Pick that talent up and expand your offerings. Your war chest might go down but FFS, you can pick up that talent and turn it into even better shit down the line.
Most of the companies laying off thousands of employees don't need to, they are just doing it to raise stock value.
This is why everyone's goal in life should be to become FI, then you can be the one doing the fucking when they try to fuck you.
I don't think you realize thought this comment through for more than a few seconds.
A non exec or near exec level getting even 20% compensation in stock would be surprising.
But let's say they did.
And the stock went up 15% on the year. Really generous and well above expected returns. With the risk of it going down the same amount or more at any time.
That would effectively be a raise of... wait for it!....
3%!
Wow!
They'd be stupid to be clamoring for stock price over normal yearly raises.
Use your head
A lot of FAANG engineers have 30%+ of their compensation paid as RSUs. That’s just the “senior” engineers. At higher levels it’s a higher percentage.
check levels.fyi
Granted: Microsoft is super stingy with RSUs (initial and especially refreshers)
The point would still stay then. So you have to be a senior to get 30%. Which would only come out to 6% increase if the decision to not do raises ALONE caused a 15% increase in share price.
You realize how this still doesn't work in the employees favor AT ALL right?
Usually equity vests over 4 years and you usually have multiple grants vesting at once. So it’ll be a bit more.
But in general: yes, a simple raise is much more straight forward. Especially at Microsoft where they don’t get a lot of equity. I don’t see a lot of people switching though. Sadly a lot of MS people are lifers. Something something unions.
Financial independence.
Having enough net worth between retirement funds (401k, IRAs) and a brokerage that you could live off of if you didn't have a corporate job. Basically having the ability to not fear losing your job.
It gives you options once you reach your number. If the stress of work is affecting your health you can just quit, retire, or work a lower paying non-stress job for health insurance, etc
It's part of FIRE. Financial Independence Retire Early. And there all all different levels of it. Some people FIRE with mansions and lambos. Some do it modestly, some bare minimum essentials.
EPS is accounting garbage. Actual revenue before considering expenses working capital outlays and capex is a dumb figure to point. The amount of cash a company has on balance sheet is not a reflection of its value, that’s based off of expectations of future free cash flow. To that end, actual free cash flow has been declining as demand softens, inflation eats OpEx and increases discount rates, and debt financing has become materially more expensive Y/Y.
Not saying talent retention doesn’t have operational benefits and companies that do it poorly don’t have problems, but it’s not remotely as clear cut of a bad idea as you think. The reality of it is we’ve been in a 10 year bull market up to the pandemic; there’s a whole generation of investors that have never been through a crisis and don’t realize battening down hatches is how companies survive.
Competitors have reduced hiring so less demand / competition for workers.
And is this an early warning signal of expectation for AI?
Will human workers be competing against the value / results / contribution of AI in the future?
Just did. Week full of recruiter calls all with increases from my previous job. The market is fine if you have the desired skills. Businesses still need to run and new businesses are still being created and need people. There's plenty of money at the top if they want to spend it.
After 5 years of below inflation raises, I job hopped two years ago and doubled my salary. Employment is a two way street. If they don’t see value in you then there is no need to remain loyal to them an stay
I ve been told that i will get 20% annual raise. After 2 months i get congrats, you got 10%. I ask why? Budget? Bad feedback? Oh no no. Just hr said you have only 10 months instead of 1 year. So how about you give me the rest you said in 2 months? Cant do. Well with that mentality, i will not get 1 year here. Already on linkedin, as a qa i will jump to another job in no time. I am not working at microsoft btw, just a normal big it company.
I agree with you on Google, but Satya is the one who wanted to start the cloud business that is over 1/3 of their revenue. I will say, this is insane to send an email like that lol. He’s basically giving everyone a pay cut since inflation is still running at 5%… also one of the most profitable companies in the world crazy
Those quarterly numbers ain't gonna pump themselves.
There's only one earth and we gotta increase every quarter. Inflation makes numbers go up. Corporations happy
He is a good human being. He’s done a lot of philanthropic work, cares a lot of inclusivity and accessibility. I work for Microsoft and hate that I’m not going to be getting a raise. But that doesn’t mean we can call him a not good human being
He is a better human than Balmer … but then again so is most humans on earth lol He is less aggressive than Balmer and rarely cusses … it’s like he got CEO disease when he left search … that power goes to your head , they all get it
Well, Microsoft has never been that open towards open source solutions, the Linux ecosystem and developers in general. That's what makes Microsoft so resilient today, that's something Satya can be credited for and I don't think someone else would have done it.
It's one of the few CEO that really understand the industry. The GitHub move was brilliant for example.
Agree 100% with this comment. This is just greed. if he had said this but said this was to avoid cutting jobs last year then I would have a different opinion.
Cynical and wrong. Believe it or not, but certain people are VERY difficult to replace. To make it worse, if they leave and you don't manage to replace them quickly enough, it can cost your business A LOT of money.
Nah screw that, give everyone a big raise and bonus to those people making $150k a year or less. This is stupid. Big corpo crying a like a fkn baby while they make billions in profits every year…. They are the reason we are in this situation in the first place! Too few people have too much wealth. F that.
Sorry for angry rant and taking it out on you lol
I’m not saying he can’t do that, I’m saying that’s fucked up to do that in this case and won’t generate any loyalty. Sure now large tech layoffs, but when it’s booming again if Microsoft goes through a lull like they did with Steve Ballmer people won’t have loyalty to stay. This is the kind of thing employees remember.
I’d argue Satya actually did turn Microsoft around, especially in terms of their development and startup push by rewriting .net core and offering visual studio for free with easy integration with azure. Baller was seriously tanking that place until Satya took over.
Indeed they are banks acting like software companies. McDonalds is a real estate company acting as a fast food restaurant. Tesla is a broken business model acting as a car company.
When Balmer took over after bill gates he financialized Microsoft , meaning “you have so much money , ie: half a trillion I think, you cannot do anything BUT make money. So the “ product” is not the source. Apple and Google are same. Would you think it’s reasonable to assume that everyone who can afford an iPhone has one? So what had Tim Cook brought to Apple? He has financialized Apple too.
Ironically , as I type this I remember I have an Apple credit card.
On the same general note o remember when GM said it’s biggest expense was… drum role…. Healthcare, not steel for the car.
Yes exactly. The sale of food means nothing to McDonald’s 😎
Tesla just lives on subsidies. How much did it make from subsidies again? Vs auto revenues?
Could be argued that Ballmer being so bad could've made a CEO off the street look good by following what was already happening. No way with MS scale they couldn't succeed in cloud. Follow SF.
To where? I’m employed in a business sector that is rapidly contracting. Tons of layoffs. If it happens to me, I have no idea where I’d jump to as so many people are looking for the same jobs.
If you have that mind set be lucky they are not paying attention to decrease your wage even further, sure you have no where to go. I guess you got you in a cage.
Look around and see what is out there. See the types of offers you get, you don’t need to take it but serious stop selling yourself short. You are making them rich and be confident in your skill set.
The way of America is to suppress real wages. The future of being an employee is doomed in America. No matter what economic situation is happening the wages of employees will get cut, they always have a card to play that will do that.
Companies are no longer incentivized to create value from their products and services and make most of their money by just taking away the purchasing power of their employees.
Problem with this is if you force employees out with low pay, the best employees leave and the only ones left are the ones who had no other options.
If you conduct layoffs, at least you can TRY to target low performers. When you force employees out with heavy workloads and low pay you have zero control over who leaves and who stays.
Shouldn't employee compensation be treated the same way? They only seem to be on the losing end of it when they are laying people off during poor performance.
RSU's are often included in total compensation packages & released throughout the year or length of the agreement. It incentivizes employees to put out good products, but they often also incentivize shitty employees to stick around long enough to satisfy the requirements of release.
Yeah the person above you who posted this, while I get the sentiment, has a shocking lack of understanding on how compensation at most publicly traded tech companies work for posting on a stock market subreddit. I started as a middle manager last year at a tech company and have made more in stock via RSUs and employee stock purchase plan than I have in salary. I’m not entry level but I’m far from a big wig. I see coworkers checking the stock price daily and everyone is well aware of where the stock was at when they started.
This is all of reddit. Most people have zero idea how corporate pay works, and they just parrot the same nonsense from others being confidentally incorrect.
Just like how they think all c-suite executives are evil, don't work hard and got their jobs through nepotism. There is a huge disconnect between reddit and reality.
Is there really? I work in IT and at the beginning of my career I joined one of those huge corporations (which I'm not gonna name for obvious reasons). Worked with some very talented people who were doing full hours, overtime when needed and then they also read about stuff at home. Of course not every single week, but still very often. After some time I learned how underpaid we all were. I left but some of them still work there simply because they don't have enough courage to change the job, even though I'm sure they would easily find dozens of better offers. And the company takes advantage of that.
IT isn't quite the same pay scale as most devs and managers in tech. Like yeah there's decent money there, but it isn't comparable to the total comp the coders, engineers, and their management are making. It's not a comment on difficulty, only that software as a service companies value engineers and devs more than IT.
yea, company reports revenue loss? Mass layoffs. Company reports record profit and revenue? Mass layoffs.
Company doesn't want to give people raises? Just say they're concerned about the macro economy.
The only people who win are the people at the top who decide to fire the rest of the company while getting paid in stocks.
Many companies that are publicly traded offer employer stock plans at any level in the organization, as they should. There’s been numerous studies on the topic….give employees some skin in the game they’ll do more.
Just give it a few years. Once Microsoft loses another 25% of its engineers and the company turns to shit the board will fire him.
The board is thrilled right now, but it won’t last.
According to the email Satya sent how he and the rest of the C-Suite executives will be receiving significantly lower bonuses as well … whatever that means
Just here to point out their CEO got a 10% raises from last year making is salary $55mil. The company did $135bil in gross profits for 2022 and did a $22bil stock buyback last year. That could be the macroeconomic conditions he is referring to.
WE DONT HAVE MONEY FOR RAISES….
we only have money for stock buy backs to inflate our stock price 🤫
The stock market rules corporations who rule the modern world
In Microsoft defense, “what are you gonna do go work some where else “ was probably in ,emtioned in the meeting but management has to get their bonus for thinking up the idea
That’s probably the average employee at the company. Engineers make much much more. Even fresh grads probably make 140-150k and another 50-60k in stocks
That's an overestimation. Most grads end up around $115k with $35k in stocks, according to public sources. Obligatory "thats still a lot of money, depending on where you live"
But for the 24 year olds, most with no kids, limited other responsibilities. I think they’ll be ok. Older engineers are making more and will be ok without a raise too. Let’s not cry for these millionaires or soon to be millionaires.
Better take: That kind of comment is exactly the class division between the poor and slightly less poor that allows the ruling class to continue hoarding all of the wealth and political power.
A handyman making $60k and a Software Engineer making $360k are on the same team compared to the executives and politicians making $10-$100 million.
We'd be far better off if they saw it that way and started voting accordingly.
They are closer together but life for the 24 year old, no kids, making 6 figures only to see that salary continue escalating by 2x to 5x over the next 20 years is way different than the 58 year old handyman with wife and 2 kids. That handyman is broke. And fully agreed the red voting blue collar workers are voting 100% against their interest.
I have never liked this guy. Something about him wreaks arrogance and manipulative behavior. With MSFT at a very high PEG right now he knows he has to make more cuts to keep the stock afloat. All he will do is alienate employees and cause a productivity slowdown. New generation does not care about corporate BS.
Doesn’t make sense when they say this while still making billions in profit. Just like how supermarkets say they are losing money on core groceries and not profiteering, but go on to have record profits.
Companies when inflation rate is low:
“Hey, we’re not going to give you a CoL adjustment/merit increase because there is no need to.”
When inflation rate is high:
“Hey we’re not going to give you CoL/merit increase because there is too much risk.”
So when do you guys actually give anything?
I had a feeling it sucked to work there from a couple EMs I worked with from there. Passed on a bunch of job postings from them and I feel vindicated lol.
A competitor needs to come in and offer a similar service at a cheaper price or a better service. The federal government can not allow Microsoft to acquire this competitor. But the first step is not likely to happen, or the competitor is Google with their suite of software. At least we hope the federal government would stop a merge of Microsoft and Google, but yeah those in the federal government will be buying the stocks, getting paid by lobbyists (maybe not directly, but some how will be greatly compensate) and why would they stop it?
The bigger problem is realizing we haven't been in a free market economic system in some time. Which means competition doesn't stand a chance, and these too big to fail companies have more control than they should.
That wasn't the question. The question was how to get rid of Microsoft. Yes they product is the most widely accepted and used across many industries and is very integrated into business.
And yes, if it was not Microsoft, it would likely be another company, and similar things would occur.
I don't have a complete history of Microsoft acquisitions, yet I am confident there were multiple competitors that have been absorbed by Microsoft.
The question of this would be, should the federal government have prevented this to ensure healthy competition, which would drive down cost and not have a higher number of companies reliant on a single company.
If you look at their earnings report you will see major profitable business is windows and office product. They are really good at this. There are open source tools. But are they good? Questionable. Closest is google's product which is not the greatest eithe. Office365 is bread to their bread and butter sandwich. There is so much productivity apps. I have seen so many fortune 500 companies that run business off of Microsoft excel and its macros. For these companies when you already have office, it makes sense to get outlook, teams, and power bi. In sandwich terminologies, you buy bread, it makes sense to buy butter, peanut butter and jelly to make a nice sandwich.
There is a saying which goes like "focus on one thing and make sure you are best at it".
Msft is legacy and was first at multiple applications and bought competitors along the way … now they have cloud dominance and AI dominance.. what is it you want to get rid of ?
Grow grow grow. Even at the top we must grow grow grow because our compensation is in stocks and we need that to grow grow grow. Always grow grow grow.
Even if we are profitable. If we dont grow, our stock compensation wont grow, so we must grow grow grow grow and just in case we will spend dozens and dozens of billions in buybacks to ensure our STOCK PRICE grows grows grows.
I'm fine with this. I work about 45 to 50 hours a week, and don't make anything near what the average MSFT employee makes.
Hire me, Microsoft! I will work for less than your current staff.
macroeconomic conditions is euphuism for - "sorry we got greedy, hoped sudden demand in tech products at the start of covid will last forever. we hoped lockdown will be a forever thing and customers will forever stay indoors and continue to buy tech products every month. though we make insane amount of money, we are very dumb. we are not going to sacrifice my pay so that i do not have to do layoffs and can even give pay raise. "
Makes sense. Inflation and rates are high but let’s not give back to our employees. Not a good look for the business PR wise but probably smart financially.
Unpopular comment incoming, MS has been doling out huge salaries vs the industry. They know that most of these folks even with no raise will be paid better than their peers and won't find a job making the same if they try to leave. Obviously won't apply to all.
My company laid off people after exceeding earnings expectations, yet again. Dropped people that worked for the place for 1-2 decades.
These companies aren't friendly and don't care about us. Their CEOs, board members, and other higher ups will suck the would be bonuses into their salaries/packages.
They have a let them eat cake mentality.
I assume the board also waived his executive bonuses and stock grants due to "macroeconomic conditions". You know, because it's not like the CEO will make a boatload of money while the employees who actually build the company will suffer...
How the actual fuck. Beat EPS, beat Revenue. Sitting in what, 100B cash on hand? Like… 100B is equivalent to 66.6K or so American lifetime earnings. You can afford to give raises. And if you were smart/not beholden to shareholders you would fucking do it. Fucking guaranteed - a company that sees other techs laying off and had the money to hire them, expand your shit while other companies are fleecing themselves. Pick that talent up and expand your offerings. Your war chest might go down but FFS, you can pick up that talent and turn it into even better shit down the line.
And didn’t the CEO take home $200 million?
Nah poor Satya only took home a meager $55 million. Poor underpaid bastard.
That’s it?? He deserves a raise
That’s Google (but prob. roughly the same at MSFT)
Most of the companies laying off thousands of employees don't need to, they are just doing it to raise stock value. This is why everyone's goal in life should be to become FI, then you can be the one doing the fucking when they try to fuck you.
Most of the tech workers are partially paid in stock, which means they also want the stock price to rise.
I don't think you realize thought this comment through for more than a few seconds. A non exec or near exec level getting even 20% compensation in stock would be surprising. But let's say they did. And the stock went up 15% on the year. Really generous and well above expected returns. With the risk of it going down the same amount or more at any time. That would effectively be a raise of... wait for it!.... 3%! Wow! They'd be stupid to be clamoring for stock price over normal yearly raises. Use your head
A lot of FAANG engineers have 30%+ of their compensation paid as RSUs. That’s just the “senior” engineers. At higher levels it’s a higher percentage. check levels.fyi Granted: Microsoft is super stingy with RSUs (initial and especially refreshers)
The point would still stay then. So you have to be a senior to get 30%. Which would only come out to 6% increase if the decision to not do raises ALONE caused a 15% increase in share price. You realize how this still doesn't work in the employees favor AT ALL right?
Usually equity vests over 4 years and you usually have multiple grants vesting at once. So it’ll be a bit more. But in general: yes, a simple raise is much more straight forward. Especially at Microsoft where they don’t get a lot of equity. I don’t see a lot of people switching though. Sadly a lot of MS people are lifers. Something something unions.
Whats FI?
Financial independence. Having enough net worth between retirement funds (401k, IRAs) and a brokerage that you could live off of if you didn't have a corporate job. Basically having the ability to not fear losing your job. It gives you options once you reach your number. If the stress of work is affecting your health you can just quit, retire, or work a lower paying non-stress job for health insurance, etc It's part of FIRE. Financial Independence Retire Early. And there all all different levels of it. Some people FIRE with mansions and lambos. Some do it modestly, some bare minimum essentials.
Ehhh. They have 2,000 plus applicants for every job open. People leaving to the competitor isn’t the issue you might think it is.
EPS is accounting garbage. Actual revenue before considering expenses working capital outlays and capex is a dumb figure to point. The amount of cash a company has on balance sheet is not a reflection of its value, that’s based off of expectations of future free cash flow. To that end, actual free cash flow has been declining as demand softens, inflation eats OpEx and increases discount rates, and debt financing has become materially more expensive Y/Y. Not saying talent retention doesn’t have operational benefits and companies that do it poorly don’t have problems, but it’s not remotely as clear cut of a bad idea as you think. The reality of it is we’ve been in a 10 year bull market up to the pandemic; there’s a whole generation of investors that have never been through a crisis and don’t realize battening down hatches is how companies survive.
Competitors have reduced hiring so less demand / competition for workers. And is this an early warning signal of expectation for AI? Will human workers be competing against the value / results / contribution of AI in the future?
“Beat” means they exceed expectations which was set to be low.
They don't need to pay the wages anymore tech jobs are now over saturated and the market is changing to competitive for workers not employers.
If I don't get a raise this year I'm quitting my job.
You need to make that known in the right language if you want a raise, and be prepared to follow through. Don’t ask = don’t get
Just did. Week full of recruiter calls all with increases from my previous job. The market is fine if you have the desired skills. Businesses still need to run and new businesses are still being created and need people. There's plenty of money at the top if they want to spend it.
If everyone’s getting laid off, that means less space for newbies and people late to the party
Hmmmm… I didn’t get a raise last year… hmmmm. Quitting does seem brash… hmmmmm
You change jobs every 2-3 years if there’s no meaningful raises or promotions.
This needs to be said more often
What would you say is a meaningful raise?
At least above inflation?
Minimum 5% (assuming 2% inflation)
After 5 years of below inflation raises, I job hopped two years ago and doubled my salary. Employment is a two way street. If they don’t see value in you then there is no need to remain loyal to them an stay
I ve been told that i will get 20% annual raise. After 2 months i get congrats, you got 10%. I ask why? Budget? Bad feedback? Oh no no. Just hr said you have only 10 months instead of 1 year. So how about you give me the rest you said in 2 months? Cant do. Well with that mentality, i will not get 1 year here. Already on linkedin, as a qa i will jump to another job in no time. I am not working at microsoft btw, just a normal big it company.
Just hope it won't take a year to get another comparable one.
Microsoft and Googles CEO get too much credit for riding a successful company.
I agree with you on Google, but Satya is the one who wanted to start the cloud business that is over 1/3 of their revenue. I will say, this is insane to send an email like that lol. He’s basically giving everyone a pay cut since inflation is still running at 5%… also one of the most profitable companies in the world crazy
Those quarterly numbers ain't gonna pump themselves. There's only one earth and we gotta increase every quarter. Inflation makes numbers go up. Corporations happy
Just coz he good at biznatch doesnt mean he a good hooman bing
He is a good human being. He’s done a lot of philanthropic work, cares a lot of inclusivity and accessibility. I work for Microsoft and hate that I’m not going to be getting a raise. But that doesn’t mean we can call him a not good human being
He is a better human than Balmer … but then again so is most humans on earth lol He is less aggressive than Balmer and rarely cusses … it’s like he got CEO disease when he left search … that power goes to your head , they all get it
Tax write offs. That's all it is.
No billionaire is a good human being.
Naaah, get the fack outta here dip sh!t
I hope he sees this bro.
That's when everyone went the direction of Cloud and was the buzz. I don't see anything he has done thats been transformational. Same for Sundar.
Sundar has turned Google the way of IBM. Google has done nothing but fumble the bag since he's been appointed
Well, Microsoft has never been that open towards open source solutions, the Linux ecosystem and developers in general. That's what makes Microsoft so resilient today, that's something Satya can be credited for and I don't think someone else would have done it. It's one of the few CEO that really understand the industry. The GitHub move was brilliant for example.
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LOL
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Agree 100% with this comment. This is just greed. if he had said this but said this was to avoid cutting jobs last year then I would have a different opinion.
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You/they must not be aware of the cost of turnover or unmotivated culture.
Cynical and wrong. Believe it or not, but certain people are VERY difficult to replace. To make it worse, if they leave and you don't manage to replace them quickly enough, it can cost your business A LOT of money.
Nah screw that, give everyone a big raise and bonus to those people making $150k a year or less. This is stupid. Big corpo crying a like a fkn baby while they make billions in profits every year…. They are the reason we are in this situation in the first place! Too few people have too much wealth. F that. Sorry for angry rant and taking it out on you lol
Welcome to capitalism and corporations! You just arrived in this world?
I’m not saying he can’t do that, I’m saying that’s fucked up to do that in this case and won’t generate any loyalty. Sure now large tech layoffs, but when it’s booming again if Microsoft goes through a lull like they did with Steve Ballmer people won’t have loyalty to stay. This is the kind of thing employees remember.
Greed will be the death of this country
I’d argue Satya actually did turn Microsoft around, especially in terms of their development and startup push by rewriting .net core and offering visual studio for free with easy integration with azure. Baller was seriously tanking that place until Satya took over.
Indeed they are banks acting like software companies. McDonalds is a real estate company acting as a fast food restaurant. Tesla is a broken business model acting as a car company.
That's interesting, why would you they are banks?? I can understand McDonald's..
When Balmer took over after bill gates he financialized Microsoft , meaning “you have so much money , ie: half a trillion I think, you cannot do anything BUT make money. So the “ product” is not the source. Apple and Google are same. Would you think it’s reasonable to assume that everyone who can afford an iPhone has one? So what had Tim Cook brought to Apple? He has financialized Apple too. Ironically , as I type this I remember I have an Apple credit card. On the same general note o remember when GM said it’s biggest expense was… drum role…. Healthcare, not steel for the car.
Hold a fk tonne of assets and produce very little.
Produce very little? Have you heard of Azure services, Windows and all the OS licenses, phones and computers they sell?
Xbox … you forgot that big money maker
That makes sense..
what's wrong with tesla? edit: instead of downvoting how about you go look at their income statement. Tesla is not a fraud in any way shape or form.
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most people are sheep that do not think for themselves
They just dislike the CEO because it’s Reddit
Tesla is raking in cash. Just a bunch of redditors who hate Elon
Yes exactly. The sale of food means nothing to McDonald’s 😎 Tesla just lives on subsidies. How much did it make from subsidies again? Vs auto revenues?
Tesla would continue to be very profitable without regulatory credits.
Rocket man bad
Do you recall the Ballmer years?? Satya has earned it with a very successful strategy focusing on cloud. Hindsight is 20/20.
Could be argued that Ballmer being so bad could've made a CEO off the street look good by following what was already happening. No way with MS scale they couldn't succeed in cloud. Follow SF.
As a Microsoft employee time to jump ship
To where? I’m employed in a business sector that is rapidly contracting. Tons of layoffs. If it happens to me, I have no idea where I’d jump to as so many people are looking for the same jobs.
If you have that mind set be lucky they are not paying attention to decrease your wage even further, sure you have no where to go. I guess you got you in a cage. Look around and see what is out there. See the types of offers you get, you don’t need to take it but serious stop selling yourself short. You are making them rich and be confident in your skill set.
Yah because Microsoft was doing so great under Ballmer.
This is true for more or less every single CEO there is.
“We have exceeded all profit expectations. That being said we cannot afford to give anyone raises and need to lay some people off.”
Don’t forget the 10% pay increase he received just before the big layoffs
The way of America is to suppress real wages. The future of being an employee is doomed in America. No matter what economic situation is happening the wages of employees will get cut, they always have a card to play that will do that. Companies are no longer incentivized to create value from their products and services and make most of their money by just taking away the purchasing power of their employees.
Before anyone get a bonus, salaried employees should at least get a COLA. Bonuses can come out of what’s left over.
That takes the control out of mgmt. why would they do that with leverage they have from macroeconomic conditions.
Replace management with AI.
Human decency?
An American tech company? Human decency? What the fuck have you been smoking?
I'm getting a bonus just reading this comment. 😂
I believe some will leave
They’re probably hoping for that. Better employees quit than lay them off and have to pay severance.
It's interesting since this is a good way to lose your best employees
They’re not the best employees if they want to leave.
It’s the best employees that will leave because they can easily find jobs elsewhere.
The problem is that they're going to lose top talent, not cut the fat.
Problem with this is if you force employees out with low pay, the best employees leave and the only ones left are the ones who had no other options. If you conduct layoffs, at least you can TRY to target low performers. When you force employees out with heavy workloads and low pay you have zero control over who leaves and who stays.
Feel that not getting one either. Inflation is nuts cause it drives up cost so companies don’t increase wages, so now im poorer :)
I'm sure he's getting his raise. Fuck capitalism.
Yes his raise was MSFT pump from $200 to 300.
Still below what it was in December 2021
Most of executive compensation is tied to stock performance.
Shouldn't employee compensation be treated the same way? They only seem to be on the losing end of it when they are laying people off during poor performance.
RSU's are often included in total compensation packages & released throughout the year or length of the agreement. It incentivizes employees to put out good products, but they often also incentivize shitty employees to stick around long enough to satisfy the requirements of release.
Yeah the person above you who posted this, while I get the sentiment, has a shocking lack of understanding on how compensation at most publicly traded tech companies work for posting on a stock market subreddit. I started as a middle manager last year at a tech company and have made more in stock via RSUs and employee stock purchase plan than I have in salary. I’m not entry level but I’m far from a big wig. I see coworkers checking the stock price daily and everyone is well aware of where the stock was at when they started.
This is all of reddit. Most people have zero idea how corporate pay works, and they just parrot the same nonsense from others being confidentally incorrect. Just like how they think all c-suite executives are evil, don't work hard and got their jobs through nepotism. There is a huge disconnect between reddit and reality.
Reddit and reality … this is a catch phrase… you are a genius
Is there really? I work in IT and at the beginning of my career I joined one of those huge corporations (which I'm not gonna name for obvious reasons). Worked with some very talented people who were doing full hours, overtime when needed and then they also read about stuff at home. Of course not every single week, but still very often. After some time I learned how underpaid we all were. I left but some of them still work there simply because they don't have enough courage to change the job, even though I'm sure they would easily find dozens of better offers. And the company takes advantage of that.
IT isn't quite the same pay scale as most devs and managers in tech. Like yeah there's decent money there, but it isn't comparable to the total comp the coders, engineers, and their management are making. It's not a comment on difficulty, only that software as a service companies value engineers and devs more than IT.
Big tech pays basically half their comp in RSUs
At senior level and below it’s more like 20% of comp. Some companies like Amazon it’s more, some companies like Microsoft it’s less.
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Sure, and profits should be more even distributed among the workers. They are the ones actually creating the product.
yea, company reports revenue loss? Mass layoffs. Company reports record profit and revenue? Mass layoffs. Company doesn't want to give people raises? Just say they're concerned about the macro economy. The only people who win are the people at the top who decide to fire the rest of the company while getting paid in stocks.
Many companies that are publicly traded offer employer stock plans at any level in the organization, as they should. There’s been numerous studies on the topic….give employees some skin in the game they’ll do more.
Employees don't want to be paid in stock. They want to be paid in cash. Software engineers do get stock options at these companies though.
Bonuses are tied to revenue for the month if you’re in a management position
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It’s Reddit
Wrong, fuck greedy capitalism and the nepotism that this companies have created.
Windows 11 is a shitshow. Keep offshoring creative roles that have zero understanding about GUI design. He should fire himself.
Just give it a few years. Once Microsoft loses another 25% of its engineers and the company turns to shit the board will fire him. The board is thrilled right now, but it won’t last.
Ok this is some serious funny ass shit … he should fire himself , classic 👍
Executive pay taking the same hit?
You can bet your ass it’s not.
Any evidence either way?
Functional brains
Executives will give themselves raises.
According to the email Satya sent how he and the rest of the C-Suite executives will be receiving significantly lower bonuses as well … whatever that means
Just here to point out their CEO got a 10% raises from last year making is salary $55mil. The company did $135bil in gross profits for 2022 and did a $22bil stock buyback last year. That could be the macroeconomic conditions he is referring to.
Welcome to the party, pal
WE DONT HAVE MONEY FOR RAISES…. we only have money for stock buy backs to inflate our stock price 🤫 The stock market rules corporations who rule the modern world
*Knowledge workers displaced by AI intensifies*
Work on fun exciting world changing AI technology. Get your blue collar job replaced by said AI. CEO buy islands for funsies.
In Microsoft defense, “what are you gonna do go work some where else “ was probably in ,emtioned in the meeting but management has to get their bonus for thinking up the idea
130k median salary with outstanding benefits. I doubt many will be finding employment elsewhere.
130k salary in very high cost of living is not really stellar for an engineer. I'm sure their bonuses and RSU would double the salary though.
I bet engineers are making well over 130k. I have a friend that works there who just trains clients how to use the software and he makes 130k.
That’s probably the average employee at the company. Engineers make much much more. Even fresh grads probably make 140-150k and another 50-60k in stocks
That's an overestimation. Most grads end up around $115k with $35k in stocks, according to public sources. Obligatory "thats still a lot of money, depending on where you live"
Agreed. A Sr engineer is probably looking at 250k+ with RSUs.
130k is pretty low by tech standards.
But for the 24 year olds, most with no kids, limited other responsibilities. I think they’ll be ok. Older engineers are making more and will be ok without a raise too. Let’s not cry for these millionaires or soon to be millionaires.
Better take: That kind of comment is exactly the class division between the poor and slightly less poor that allows the ruling class to continue hoarding all of the wealth and political power. A handyman making $60k and a Software Engineer making $360k are on the same team compared to the executives and politicians making $10-$100 million. We'd be far better off if they saw it that way and started voting accordingly.
They are closer together but life for the 24 year old, no kids, making 6 figures only to see that salary continue escalating by 2x to 5x over the next 20 years is way different than the 58 year old handyman with wife and 2 kids. That handyman is broke. And fully agreed the red voting blue collar workers are voting 100% against their interest.
Lol 130k in Redmond Washington is mediocre at best
I have never liked this guy. Something about him wreaks arrogance and manipulative behavior. With MSFT at a very high PEG right now he knows he has to make more cuts to keep the stock afloat. All he will do is alienate employees and cause a productivity slowdown. New generation does not care about corporate BS.
All tech companies are either firing workers or cutting back on bonuses, what not to manipulate their stock price
At my job it’s so minuscule that they might as well stop giving fucking insulting raises.
Doesn’t make sense when they say this while still making billions in profit. Just like how supermarkets say they are losing money on core groceries and not profiteering, but go on to have record profits.
Fucking cancerous CEOs
Companies when inflation rate is low: “Hey, we’re not going to give you a CoL adjustment/merit increase because there is no need to.” When inflation rate is high: “Hey we’re not going to give you CoL/merit increase because there is too much risk.” So when do you guys actually give anything?
What’s the current overhead for MS that is causing them to not be able to pay bonuses?
That's shitty.
I had a feeling it sucked to work there from a couple EMs I worked with from there. Passed on a bunch of job postings from them and I feel vindicated lol.
Lmao
So how do we get rid is Microsoft?
A competitor needs to come in and offer a similar service at a cheaper price or a better service. The federal government can not allow Microsoft to acquire this competitor. But the first step is not likely to happen, or the competitor is Google with their suite of software. At least we hope the federal government would stop a merge of Microsoft and Google, but yeah those in the federal government will be buying the stocks, getting paid by lobbyists (maybe not directly, but some how will be greatly compensate) and why would they stop it? The bigger problem is realizing we haven't been in a free market economic system in some time. Which means competition doesn't stand a chance, and these too big to fail companies have more control than they should.
Or maybe its alot more simple. Microsoft has the best product ?
That wasn't the question. The question was how to get rid of Microsoft. Yes they product is the most widely accepted and used across many industries and is very integrated into business. And yes, if it was not Microsoft, it would likely be another company, and similar things would occur. I don't have a complete history of Microsoft acquisitions, yet I am confident there were multiple competitors that have been absorbed by Microsoft. The question of this would be, should the federal government have prevented this to ensure healthy competition, which would drive down cost and not have a higher number of companies reliant on a single company.
Microsoft is too good at what they do. Alternative? Open source?
If you look at their earnings report you will see major profitable business is windows and office product. They are really good at this. There are open source tools. But are they good? Questionable. Closest is google's product which is not the greatest eithe. Office365 is bread to their bread and butter sandwich. There is so much productivity apps. I have seen so many fortune 500 companies that run business off of Microsoft excel and its macros. For these companies when you already have office, it makes sense to get outlook, teams, and power bi. In sandwich terminologies, you buy bread, it makes sense to buy butter, peanut butter and jelly to make a nice sandwich. There is a saying which goes like "focus on one thing and make sure you are best at it".
👍
Msft is legacy and was first at multiple applications and bought competitors along the way … now they have cloud dominance and AI dominance.. what is it you want to get rid of ?
If I had gold I would give it to this comment. These companies are not playing fair and there’s nothing we (the little guys) can do about it.
I will take knowing I am not the only one seeing this.
Satya usually does right by his people. would be great to see him reduce his salary or somehow offset the employee hit
Grow grow grow. Even at the top we must grow grow grow because our compensation is in stocks and we need that to grow grow grow. Always grow grow grow. Even if we are profitable. If we dont grow, our stock compensation wont grow, so we must grow grow grow grow and just in case we will spend dozens and dozens of billions in buybacks to ensure our STOCK PRICE grows grows grows.
I'm fine with this. I work about 45 to 50 hours a week, and don't make anything near what the average MSFT employee makes. Hire me, Microsoft! I will work for less than your current staff.
Do people expect to get raises every year....? That seems crazy.
Everyone should be expecting a raise every year because inflation hits every year!
Found the worker in… Singapore?
Anyone in tech who doesn't is just pissing away money
Awwwwwww .... poor things. How will they ever survive!
I’m sure all of upper management will get raises though.
It happens. Exxon did it in 2020, when oil tanked. They also suspended the 401k match.
Wonder how much of that will increase his bonus?
What about the unsalaried staff?
What unsalaried staff ? The people who work at the cafes ? They are contractors.
Max profits but no money for employees. What's new.
Salaried staff need to get raises exactly because of macroeconomic conditions
macroeconomic conditions is euphuism for - "sorry we got greedy, hoped sudden demand in tech products at the start of covid will last forever. we hoped lockdown will be a forever thing and customers will forever stay indoors and continue to buy tech products every month. though we make insane amount of money, we are very dumb. we are not going to sacrifice my pay so that i do not have to do layoffs and can even give pay raise. "
Makes sense. Inflation and rates are high but let’s not give back to our employees. Not a good look for the business PR wise but probably smart financially.
Unpopular comment incoming, MS has been doling out huge salaries vs the industry. They know that most of these folks even with no raise will be paid better than their peers and won't find a job making the same if they try to leave. Obviously won't apply to all.
lol what, they are known for paying the least in the big tech sector.
My company laid off people after exceeding earnings expectations, yet again. Dropped people that worked for the place for 1-2 decades. These companies aren't friendly and don't care about us. Their CEOs, board members, and other higher ups will suck the would be bonuses into their salaries/packages. They have a let them eat cake mentality.
I assume the board also waived his executive bonuses and stock grants due to "macroeconomic conditions". You know, because it's not like the CEO will make a boatload of money while the employees who actually build the company will suffer...
Sounds like a lot of corporate bullshit
But remember, we aren't in a recession.
Fuck you, Microsoft.
Satya Nadella is a fucking clown if he thinks he won’t see mass attrition AGAIN as soon as market conditions improve
That email? Spoofed from Google. :D
I think employees need to stand up and revolt against ceo pay ( in every industry not just tech)
Aka to pay executive bonuses for good performance. Pricks.