Microsoft's AI Engineers Command Significantly Higher Salaries, Leaked Data Reveals

Leaked Data: Huge Pay Gap In Favor Of AI Engineers At Microsoft - Microsoft (NASDAQ:MSFT)

Despite previous salary freezes, AI specialists at Microsoft rake in over $120,000 more than colleagues in other departments. Leaked Microsoft Corp. pay data shows a substantial disparity in favor of AI engineers, underlining the company's significant investment in AI. What Happened: Several Microsoft employees voluntarily disclosed their salary and promotion details through an unofficial spreadsheet. This document, which includes over 500 entries, offers a glimpse into the tech giant's compensation structure. The data analysis indicated that the average total compensation for software engineers in Microsoft's newly formed AI organization was $377,611, a figure that's at least $120,000 higher than the averages in other Microsoft divisions. This team was established in March to enhance Microsoft's consumer-AI strategy, under the leadership of DeepMind co-founder Mustafa Suleyman. Despite a company-wide salary freeze and a decrease in bonus and stock award budget last year, Microsoft resumed performance-based pay raises this year. Also Read: Bill Gates' Leadership Instills Fear, Created 'King's Court-Like' Atmosphere At Foundation The pay gap between Microsoft's AI division and the rest of the company is clear, emphasizing the company's significant commitment to AI. While the data is based on self-reporting by Microsoft employees and may not provide a comprehensive view, it does underscore the pay disparity within the company. Why It Matters: The pay gap underscores Microsoft's strategic focus on AI. The company's significant investment in AI is a part of its long-term strategy to stay competitive in the rapidly evolving tech industry. The formation of a new AI division and the hiring of high-profile AI experts like DeepMind co-founder Mustafa Suleyman further highlights this focus. The pay disparity is a clear indication of the value Microsoft places on AI expertise, reflecting the growing importance of AI in the tech industry. Read Next Whistleblowers Accuse OpenAI Of Hindering Staff From Reporting AI Risks This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors. Market News and Data brought to you by Benzinga APIs

Microsoft's New AI Org Engineers Get Paid The Highest, Salary Significantly Beats Azure Unit Employees, Shows Leaked Spreadsheet - Microsoft (NASDAQ:MSFT)

A spreadsheet said to contain the salary information of software engineers at Microsoft Corporation MSFT has been reportedly leaked -- shedding light on the tech behemoth's compensation structure. What Happened: Following performance reviews earlier this year, hundreds of Microsoft employees shared their pay and promotion details in a spreadsheet. Most employees only found out about their new compensation this month, reported Business Insider. The unofficial Microsoft document includes data such as salaries, performance-based raises, promotions, and bonus percentages. Over 500 submissions from individuals claiming to be Microsoft employees in the U.S. were analyzed by the report. See Also: Take-Two Interactive Software Shares Are Trading Higher Today: What's Going On Microsoft's compensation structure, similar to most tech companies, comprises base pay, cash bonuses, and stock awards. Here's a comparison of the compensation structure of the two highest-level software engineers shown in the screenshot shared by the report: The report also reviewed Microsoft's software engineers' average salaries, raises, cash bonuses, and stock awards across different divisions. The highest reported pay was found among engineers in Microsoft's newly established AI organization, created in March when the tech behemoth brought on Mustafa Suleyman, a cofounder of DeepMind, as the CEO, the report noted. Suleyman's team focuses on developing consumer AI products like Microsoft's Copilot AI chatbot and the Bing search engine. Here's a table comparing the compensation of Microsoft's AI and Azure units: Microsoft did not immediately respond to Benzinga's request for comments. Why It Matters: Last month, Microsoft reported its fourth-quarter earnings, highlighting a 15% YoY increase in revenue, reaching $64.7 billion. The company's focus on leading the AI era was also emphasized, aligning with the high compensation for software engineers in the new AI organization. Meanwhile, the tech industry has been under scrutiny for its demanding work culture. For instance, Elon Musk has been criticized for expecting employees to work unconventional hours for extended periods. An earlier BI report suggested that Musk's EV company Tesla pays most of its employees within the salary range of $85,000 to $175,000. Similarly, at Musk's rocket company SpaceX, production supervisors reportedly earn an average of $102,000 annually, software engineers receive around $172,000 per year, and launch engineers can earn up to $238,000. Photo Courtesy: Shutterstock.com Read Next: Inside Google's Pixel And Android Superunit: Leaked Organization Chart Reveals Key Figures In Charge Of Taking On Apple's iPhone Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors. Market News and Data brought to you by Benzinga APIs

Leaked Microsoft salary data shows the pay gap between Microsoft AI and the rest of the company

It's an uncomfortable question for many, but some workers embrace pay transparency to understand how their salaries compare to their colleagues'. That's the case at Microsoft, where hundreds of employees voluntarily share details of their pay and promotions via an unofficial spreadsheet, writes Business Insider's Ashley Stewart. The doc includes more than 500 submissions from people who identified themselves as Microsoft employees in the US. Ashley broke down the numbers to calculate Microsoft software engineers' average total comp, base pay, cash bonus/stock awards, and raise/bonus percentages for this year across multiple levels. Such an expansive view of a tech giant's salary ranges is always fascinating. But Microsoft's comp data is particularly interesting considering its tumultuous recent history around pay. In 2022, Microsoft raised compensation via stock grants and salary increases for all but its most senior employees. The move came in response to a growing number of its workers feeling underpaid compared to Microsoft's tech peers like Amazon. The pay boon was short-lived, though. Last year Microsoft initiated a salary freeze and reduced its bonus and stock award budget. But this year the company restarted performance-based raises. Microsoft comp data is another example of how big the company is betting on AI. The average total comp for software engineers in the new Microsoft AI org -- $377,611 -- was at least $120,000 higher than the averages in Microsoft's other orgs (Azure, Cloud and AI, Experiences and Devices.) The group was formed in March as a way to supercharge Microsoft's consumer-AI strategy, which includes its Copilot AI chatbot and Bing search engine. Mustafa Suleyman, a DeepMind cofounder, runs the team. As a reminder, this pay data is based on Microsoft employees' self-reporting, so it's not a complete picture. However, the pay gap between Microsoft AI and the rest of the company is undeniable. On the one hand, it's understandable why Microsoft would shell out big for AI talent. The company clearly believes it's the future of the industry, and they're not alone. So many deep-pocketed tech firms chasing after a small pool of AI talent is bound to drive the price up. But that doesn't make it an easier pitch to the other employees. While they work on the products keeping the lights on at Microsoft, their colleagues get paid significantly more to focus on stuff with a questionable path to profitability. The Insider Today team: Dan DeFrancesco, deputy editor and anchor, in New York. Jordan Parker Erb, editor, in New York. Hallam Bullock, senior editor, in London. Milan Sehmbi, fellow, in London. Amanda Yen, fellow, in New York.