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Microsoft Freezes Salaries for 2023

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Re: Microsoft Freezes Salaries for 2023

#41

Post by sethhochberg »

skrebbel wrote: post #33
Apreche wrote: post #8

Correct headline: Microsoft cuts salaries for 2023. Even in a good economy inflation and cost of living increases are a thing.

I never understood the idea that salaries should be expected to always be corrected for inflation, and that not doing so is somehow secretly a "salary cut". Salaries are driven by supply and demand, and individual companies (maybe not Microsoft though) can generally only afford to raise them by a given amount. If that amount is less than inflation then that's that, right? Most companies (again, maybe not Microsoft th…

Presumably the business is not just leaving the prices they charge for their good/services static and saying "welp, a dollar is worth less now than it was, I guess we'll target less revenue!"

Cost-of-living salary adjustments should reasonably be expected in the same way a company is reasonably expected to adjust pricing according to economic conditions.

Re: Microsoft Freezes Salaries for 2023

#42

Post by csa »

pydry wrote: post #26
galoisscobi wrote: post #15

Wondering how long it’ll take for other tech companies to copy this move and pretend that they independently arrived at these conclusions after their meticulous macroeconomic analysis.

I wonder how much illegal back channel coordination there is going on between the big tech companies on this.

It doesn’t take illegal back channel coordination to play follow the leader.

All it takes is one major company to pull the trigger, then the rest will follow.

The hiring market during covid was wonky in a way that favored applicants, and a lot of folks who got hired were under-qualified, overpaid, or both. This is just a natural reversion to a more balanced state across the industry.

Re: Microsoft Freezes Salaries for 2023

#43

Post by nforgerit »

pianoben wrote: post #30
ClumsyPilot wrote: post #21

Earlier quoted context omitted.

This kind of comment woups not have been here like 3 years ago. It was an amazing journey to watch HN denisens adjust their opinions as they went from creme de la creme and 'anyone can create a unicorn tonorrow' to, you know, being basically like a plumber but for JSON.

The secret is, we've always been plumbers . It's not a terrible comparison in some ways - plumbers are highly-skilled, scarce, and command high prices for their services. Nobody mistakes them for Capital, especially not plumbers themselves. Engineers seem to have gotten the wrong idea about themselves lately.

Gosh I like this comment so much. This is exactly how I felt and saw ourselves whilst sitting in hipster startup offices getting way too much money compared to the rest of society. That said, tech people in general publicly don't get enough respect or disrespect for their work.

Re: Microsoft Freezes Salaries for 2023

#45

Post by vore »

heywhatupboys wrote: post #36
boredumb wrote: post #32

HN comments about profits, CEOs, share holders and executives are increasingly resembling twitter takes.

Basically. Profiters of stocks are evil, and take advantage of the poor developers!! Why don't you own stock then, it's public? ANGER

Because executives get issued an order of magnitude more stock than you could ever reasonably buy?

Re: Microsoft Freezes Salaries for 2023

#46

Post by onlyrealcuzzo »

mc32 wrote: post #40
galoisscobi wrote: post #15

Wondering how long it’ll take for other tech companies to copy this move and pretend that they independently arrived at these conclusions after their meticulous macroeconomic analysis.

Is it not better/preferable to freeze salaries than to cut more staff? From a morale PoV, from a human PoV, except maybe not from an individual PoV, overall.

It might be better if you didn't over hire.

I can't speak for MSFT. But a lot of tech companies definitely hired to banana town.

Cutting would be better than freezing salaries.

Re: Microsoft Freezes Salaries for 2023

#47

Post by WalterBright »

dig1 wrote: post #10

Yet CEO's bonus in 2022 was 20x bigger than his salary. I don't think it will be less this year either; with all-time high stock price and these "cost cuts", he will be wholesomely rewarded.

Anyone can buy MSFT and get their share. As for the employees, they have stock options and are getting a piece of the all-time high stock price.

Although MSFT's all time high stock price was in 2021.

This goes for all public corporations. Anyone can get a piece of the action by buying some stock in them.

As for the size of Nadella's compensation package, speaking as a long term MSFT shareholder Nadella has earned it. You might want to check out a graph of MSFT's stock price before and after Nadella became CEO.

Re: Microsoft Freezes Salaries for 2023

#48

Post by UK-Al05 »

skrebbel wrote: post #33
Apreche wrote: post #8

Correct headline: Microsoft cuts salaries for 2023. Even in a good economy inflation and cost of living increases are a thing.

I never understood the idea that salaries should be expected to always be corrected for inflation, and that not doing so is somehow secretly a "salary cut". Salaries are driven by supply and demand, and individual companies (maybe not Microsoft though) can generally only afford to raise them by a given amount. If that amount is less than inflation then that's that, right? Most companies (again, maybe not Microsoft th…

Because it is a cut. Your spending power is less. It's a real terms cut. There's a good chance they've increased their product prices by inflation as well.

I mean they don't have to raise salaries, but if someone is offering me a higher rate I'm going to go.

You have no responsibility to your company.

Now if the entire market is telling me to take a cut, either it's collusion or software developers are simply worth less now.

Re: Microsoft Freezes Salaries for 2023

#49

Post by zach_miller »

skrebbel wrote: post #33
Apreche wrote: post #8

Correct headline: Microsoft cuts salaries for 2023. Even in a good economy inflation and cost of living increases are a thing.

I never understood the idea that salaries should be expected to always be corrected for inflation, and that not doing so is somehow secretly a "salary cut". Salaries are driven by supply and demand, and individual companies (maybe not Microsoft though) can generally only afford to raise them by a given amount. If that amount is less than inflation then that's that, right? Most companies (again, maybe not Microsoft th…

If the business can't afford to raise salaries to match the prices of goods, then that is a pay cut in terms of the goods I can afford. It doesn't matter why.

If I earned $5/hour last year and a gallon of milk was $5, then milk going to $6 means that my milk/hour rate has gone down unless I now earn $6/hour. That is a pay cut.

Re: Microsoft Freezes Salaries for 2023

#50

Post by ejb999 »

nineplay wrote: post #24

Perhaps its a false dichotomy, but I'll take a pay freeze/cut over a layoff any day.

Would you take a pay cut to save someone else's from being laid off in your company? It's a serious question, just curious, there is no right answer - I wouldn't, nor would I accept even a $1 cut in my pay - the day that happens is the day I give my notice. Not an option for everyone I know.
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