Microsoft pay guidelines obtained by Business Insider reveal how much the software giant generally will pay technical talent, shedding light on an opaque hiring process.
The documents, last updated in May, do come with a carve-out: In competitive situations, recruiters can seek approval for higher offers for exceptional candidates.
That’s a key caveat considering big tech companies are in an all-out battle for AI talent, with some offering staggering pay packages to engineers and researchers. OpenAI CEO Sam Altman said Meta is offering engineers $100 million signing bonuses. Meta also reportedly poached a former top Apple AI engineer with a pay package worth more than $200 million.
Microsoft has a level system to denote seniority. Levels 57 to 59 are generally considered entry-level engineers, while senior engineers begin at level 63, and principal-level engineers begin at level 65. The higher levels are more rare. Partners start at level 68 while distinguished engineers are at level 70.
According to the documents, Level 70 candidates can earn a yearly salary of as much as $408,000, depending on location. Their compensation would also include a one-time stock award upon hiring of as much as $1.9 million and could include an additional signing bonus, though a range isn’t specified. Their future compensation would include an annual stock award worth as much as $1,476,000, according to the documents.
Microsoft has different salary ranges for different locations. For example, there’s a “main” pay range for workers at the company’s Redmond, Washington, headquarters, along with a “high” pay range for workers in higher cost-of-living areas such as San Francisco. Most of Microsoft’s hiring happens in these locations, according to a person familiar with the hiring process.
The packages outlined in these documents include ranges for salaries, on-hire stock awards, signing bonuses, annual stock awards, and percentages for annual bonuses based on levels.
Microsoft declined to comment.
Microsoft’s leveling system indicates seniority for engineers and other talent. Lower levels can include entry-level engineers, while higher levels include senior engineers and principal-level engineers. See the list below for the different levels and the compensation ranges.
Level 57 (entry level)
“High” salary range: $95,800 to $124,600″Main” salary range: $83,000 to $108,000On-hire stock award: $5,000 to $13,000Annual stock award: “By career stage”Signing bonus: $0 to $9,000Annual bonus: “NA”
Level 58
“Main” salary range: $94,100 to 122,300″High” salary range: $105,900 to $137,700On-hire stock award: $6,000 to $20,000Annual stock award: “By career stage”Signing bonus: $0 to $18,000Annual bonus: 0 to 20%
Level 59
“Main” salary range: $101,400 to $152,000″High” salary range: $109,000 to $163,600On-hire stock award: $15,000 to $120,000Annual stock award: $0 to $20,000Signing bonus: $0 to $18,000Annual bonus: 0 to 20%
Level 60
“Main” salary range: $110,200 to $165,200″High” salary range: $120,200 to $180,400On-hire stock award: $20,000 to $130,000Annual stock award: $0 to $24,000Signing bonus: $0 to $27,000Annual bonus: 0 to 20%
Level 61
“Main” salary range: $123,200 to $184,800″High” salary range: $131,400 to $197,000On-hire stock award: $30,000 to $150,000Annual stock award: $0 to $36,000Signing bonus: $0 to $36,000Annual bonus: 0 to 20%
Level 62
“Main” salary range: $132,600 to $199,000″High” salary range: $143,600 to $215,400On-hire stock award: $40,000 to $170,000Annual stock award: $0 to $44,000Signing bonus: $0 to $45,000Annual bonus: 0 to 20%
Level 63 (senior)
“Main” salary range: $145,000 to $218,400″High” salary range: $158,400 to $237,600On-hire stock award: $55,000 to $220,000Annual stock award: $0 to $64,000Signing bonus: $0 to $45,000Annual bonus: 0 to 30%
Level 64
“Main” salary range: $156,500 to $234,700″High” salary range: $172,000 to $258,000On-hire stock award: $70,000 to $270,000Annual stock award: $0 to $80,000Signing bonus: $0 to $54,000Annual bonus: 0 to 30%
Level 65 (principal)
“Main” salary range: $172,800 to $259,200″High” salary range: $188,000 to $282,000On-hire stock award: $100,000 to $320,000Annual stock award: $0 to $130,000Signing bonus: $0 to $90,000Annual bonus: 0 to 40%
Level 66
“Main” salary range: $183,200 to 274,800″High” salary range: $202,800 to $304,200On-hire stock award: $180,000 to $640,000Annual stock award: $0 to $200,000Signing bonus: $0 to $126,000Annual bonus: 0 to 40%
Level 67
“Main” salary range: $197,800 to $296,400″High” salary range: $220,800 to $331,200On-hire stock award: $380,000 to $850,000Annual stock award: $0 to $420,000Signing bonus: $0 to $180,000Annual bonus: 0 to 60%
Level 68 (partners)
“Main” salary range: $212,800 to $319,200″High” salary range: $236,000 to $354,000On-hire stock award: $500,000 to $1,150,000Annual stock award: $0 to $754,000Signing bonus: Not listedAnnual bonus: 0 to 90%
Level 69
“Main” salary range: $225,600 to $338,400″High” salary range: $247,000 to $370,800On-hire stock award: $657,000 to $1.35 millionAnnual stock award: $0 to $1,150,000Signing bonus: Not listedAnnual bonus: 0 to 90%
Level 70 (distinguished)
“Main” salary range: $252,000 to $378,000″High” salary range: $272,000 to $408,000On-hire stock award: $827,001 to $1.9 millionAnnual stock award: $0 to $1,476,000Signing bonus: Not listedAnnual bonus: 0 to 90%
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