Many corporations are increasing salaries to hold onto employees. In this video clip from "The Virtual Opportunities Show" on Motley Fool Live, recorded on May 17, Fool.com contributor Demitri Kalogeropoulos discusses a recent article that outlines some new compensation plans for Microsoft (MSFT -2.45%), Alphabet (GOOGL -1.97%) (GOOG -1.96%), and Amazon (AMZN -1.65%) workers.
10 stocks we like better than Microsoft
When our award-winning analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now... and Microsoft wasn't one of them! That's right -- they think these 10 stocks are even better buys.
*Stock Advisor returns as of April 27, 2022
Demitri Kalogeropoulos: Microsoft in the headline here from Wall Street Journal today, "Microsoft Boosts Pay in a Fight for Talent" is the headline. The software company plans nearly to double its global merit-based salary budget and this is The Journal got a hold of some information, I guess, employee memo that went out, I guess yesterday from CEO Satya Nadella telling employees that they're planning to roughly double their global budget for merit-based salary raises and then they're also going to raise annual stock compensation with a question about that, we'll cover too by at least 25%, according to this.
Obviously, Microsoft is in a lot of growth categories and it's in a battle with a bunch of other big tech companies trying to get talent and hold onto its talent and it doesn't want to get into the situation that Rachel described where a lot of its intellectual property moves away by people quitting and people start getting that vicious cycle going.
But this article mentions a few good pieces of context there [from] Alphabet recently. For example, announcing a new cash [bonus plan] that lets employees, it says, receive bonuses of nearly any size for nearly any reason. I didn't realize I love that phrasing there. That sounds like a very Google thing to do.
Then it reminds us that in February, Amazon said it plans to double its cash pay cap for employees and so all of this is kind of in that same category and I know Jose, you saw something too recently around that. We know that Facebook is ironically moving Meta (META -10.56%), which used to be Facebook, is moving the other direction. There's pressure on companies to cut costs right now. But there's also a lot of pressure internally to hold onto these high-value employees.
