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The typical Microsoft worker earns $168K as new rules reveal income info

It seemingly pays to work at Microsoft, to the tune of $168,000. Recently, Microsoft disclosed that the company’s median employees pay is upwards of $168,000.

The Silicon Valley Business Journal reports that while $168,000 seems rather high for average non-tech workers, it’s apparently a number that nestles itself nicely in the middle of the pack of other Silicon Valley-based companies such as Alphabet (aka Google), Facebook or even Netflix.

I personally doubt the average Windows engineering team or Office 365 marketing squad make that $168,000 individually. While it seemed plausible that Microsoft’s CEO, Satya Nadella nesting $25.8 million (including all compensations and bonuses) last year, would raise the median employee pay, the Silicon Valley Business Journal reports on numbers using a methodology that excludes CEO pay.

Furthermore, the Silicon Valley Business Journal outlines the intricacies that go into the whole number of median employee pay, clarifying that office perks and other company benefits such as free daycare are rounded up in the total.

  • Median pay means half of the company’s employees, not including the CEO, make less, and half make more.
  • This data is public due to new financial reporting rules in the Dodd-Frank Wall Street Reform and Consumer Protection Act that require many U.S. public companies to calculate and disclose median worker pay, and how that compares to the CEO’s compensation, in their annual filings with the U.S. Securities and Exchange Commission.
  • The median pay figure for each company does not necessarily reflect that of an employee who is in the Bay Area. Some companies, notably chipmakers like Intel and Cypress Semiconductor, have large manufacturing workforces outside the region.
  • In calculating median pay, the companies notably don’t account for the lavish workplace perks that many Bay Area tech employers are known for, including free daily catered meals, generous paid vacation time, and on-campus gyms and laundry facilities.
  • At some companies, like Facebook and Alphabet, median pay includes the value of restricted stock units and other employee benefits.
  • Some of the region’s biggest tech employers — including Apple, Inc., Cisco Systems and Adobe Systems — have not yet disclosed their median pay figures. We’ll report again as they disclose those numbers.

Despite the seemingly high employee pay, Microsoft still has some work to do with addressing its employee culture to keep and attract new employees. Currently, initiating a wide 3rd party partnership memorandum for extending paid parental leave while also facing a potential class-action lawsuit for gender discrimination and workplace harassment.

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Do you think it pays to work at Microsoft?