Microsoft reveals pay ranges for new technical hires, with top engineers eligible for up to $408,000 salary and $1.9 million in stock upon hiring

Microsoft has revealed internal pay guidelines for new hires, obtained by Business Insider, which outline compensation structures for technical roles and highlight the company’s approach to competing for top AI talent. The documents, last updated in May, provide salary ranges and benefits tied to a tiered level system that reflects employee seniority. While the guidelines establish standard compensation, they include a notable exception: recruiters can request approval for higher offers in competitive hiring scenarios to secure exceptional candidates. This flexibility underscores the intense rivalry among tech giants for skilled AI professionals, as companies like OpenAI and Meta have reportedly offered staggering packages, including multi-million-dollar signing bonuses. Microsoft’s level system categorizes roles into distinct tiers, with Level 57 to 59 designated as entry-level engineers. Senior engineers start at Level 63, while principal engineers begin at Level 65. Higher levels, such as Partners (Level 68) and Distinguished Engineers (Level 70), are rare and reserved for top performers. According to the guidelines, Level 70 employees—among the most senior in the company—can earn an annual salary of up to $408,000, depending on location. Their compensation also includes a one-time stock award of as much as $1.9 million upon hiring, with additional signing bonuses possible, though no specific range is provided. Over time, these employees may receive annual stock awards worth up to $1.476 million, reflecting long-term value. Compensation varies by location, with Microsoft maintaining a “main” pay range for employees in Redmond, Washington, its headquarters, and a “high” range for workers in regions with higher living costs, such as San Francisco. Most hiring occurs in these locations, according to an insider familiar with the process. The guidelines also detail salary bands, on-hire stock awards, signing bonuses, annual stock awards, and performance-based annual bonuses, which are structured according to each level. The disclosure comes as Microsoft faces growing pressure to retain and attract talent amid a fierce AI hiring war. OpenAI CEO Sam Altman previously claimed Meta offers engineers $100 million signing bonuses, while Meta reportedly lured a former Apple AI executive with a package exceeding $200 million. Microsoft’s approach emphasizes structured compensation while allowing for adjustments in high-competition scenarios. The company has not publicly commented on the guidelines, which were shared with Business Insider by an anonymous source. These pay structures reflect Microsoft’s strategy to balance consistency with adaptability in a market where top AI researchers and engineers are in high demand. The company’s focus on tiered compensation aligns with its broader efforts to scale AI capabilities, competing with rivals like Google, OpenAI, and Anthropic, which have also been aggressively expanding their teams. The guidelines suggest that Microsoft aims to maintain a competitive edge by offering substantial financial incentives, even as it navigates the challenges of a rapidly evolving tech landscape.