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What Microsoft announced
According to GeekWire’s report on the announcement, Microsoft told employees it would provide a special, performance-based cash award tied to fiscal 2024. The reported award was calculated as a percentage of the employee’s annual bonus value. Microsoft described it as an extra payment alongside traditional annual rewards.
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This was not a second full annual bonus, nor was the percentage based directly on base salary. Public reporting does not clarify whether Microsoft calculated each award from a target bonus, an actual bonus after performance adjustments, or another bonus-value measure.
Who was eligible?
Reports described the award as covering salaried and hourly employees at the senior-director level and below, generally Microsoft level 67 and below. Executives were excluded. CNBC’s account of the company memo describes the covered employee groups and seniority cutoff; CNBC’s report also notes the award’s relationship to annual bonus eligibility.
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The reports do not establish that every employee below the level threshold automatically qualified regardless of performance, start date, employment status, location, or bonus eligibility. Although hourly and equivalent roles were reportedly included, public accounts do not detail how the calculation worked for every such role. They also do not spell out identical country-by-country rules.
How much was the award?
Reported rates were approximate and varied by level. Employees at level 61 and below could receive about 25% of their annual bonus, while employees at higher eligible levels, including around level 67, could receive about 10%. The public reporting does not supply a complete level-by-level schedule.
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| Illustrative annual bonus | Reported award rate | Illustrative special award |
|---|---|---|
| $10,000 | 10% | $1,000 |
| $10,000 | 25% | $2,500 |
These examples show the arithmetic only; they are not reported Microsoft payouts. Because the award was a share of bonus value, the dollar amount depended on that underlying value. The reports do not establish a companywide minimum, maximum dollar payment, average award, or total cost.
How it differed from normal annual compensation
Microsoft’s reported message presented the special award as additional to its ordinary annual rewards. The company continued to fund regular bonuses, merit-based salary increases, and stock awards, according to GeekWire.
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- USE FOR GAMES & CONTENT — Redeem for thousands of digital XBOX games, from backward compatible classics to the latest new releases, plus DLC and in‑game currency.
- GAME PASS READY — Apply your balance toward XBOX Game Pass Ultimate to play new titles on day one* and access a library of hundreds of high‑quality console games.
- PRE‑ORDER & PRE‑INSTALL GAMES — Use your balance to pre‑order and pre‑download upcoming titles so you’re ready to play the moment they launch.
- NO FEES OR EXPIRATION — XBOX Gift Cards never expire and have no service fees, so your balance is ready whenever you are.
- Regular annual bonus: The usual bonus program; the special award was calculated as a percentage of annual bonus value, not a replacement for it.
- Merit increase: A salary increase based on merit, distinct from a one-time cash payment.
- Stock award: Equity compensation, separate from the cash award.
- Special award: A one-time cash payment tied to fiscal 2024 rewards, not a standing annual benefit.
Executive incentive compensation was a separate system. The employee award excluded executives; Microsoft’s executive incentives and equity arrangements are disclosed separately in its proxy statement.
Why Microsoft made the payment
Chief People Officer Kathleen Hogan reportedly said senior leaders wanted to recognize employees’ work and impact during a strong fiscal year, including execution and innovation. Microsoft’s fiscal fourth-quarter 2024 results provided context: revenue was $64.7 billion, up 15% year over year, and net income was $22 billion, up 10% year over year, as summarized in GeekWire’s coverage. The reporting does not say the payment was triggered by a specific revenue or profit threshold.
Rank #4
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- USE FOR GAMES & CONTENT — Redeem for thousands of digital XBOX games, from backward compatible classics to the latest new releases, plus DLC and in‑game currency.
- GAME PASS READY — Apply your balance toward XBOX Game Pass Ultimate to play new titles on day one* and access a library of hundreds of high‑quality console games.
- PRE‑ORDER & PRE‑INSTALL GAMES — Use your balance to pre‑order and pre‑download upcoming titles so you’re ready to play the moment they launch.
- NO FEES OR EXPIRATION — XBOX Gift Cards never expire and have no service fees, so your balance is ready whenever you are.
How it fit the recent pay context
Contemporaneous coverage noted that Microsoft had nearly doubled its global merit-increase budget in 2022, then made job cuts and did not provide pay raises to full-time salaried employees in 2023. Those reports provide context rather than a complete account of the company’s compensation policies. The 2024 announcement included merit increases alongside ordinary bonuses and stock awards.
What public reports do not establish
The published accounts do not specify the exact payment date, total cost, recipient count, detailed country rules, contractor eligibility, treatment of employees who left before payment, or a full level-by-level rate schedule. Nor do they establish that Microsoft repeated the special award in fiscal 2025 or fiscal 2026. A separate 2026 voluntary retirement package is a different program, not evidence that the 2024 award returned; see GeekWire’s report on that program.
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Best Value
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- USE FOR GAMES & CONTENT — Redeem for thousands of digital XBOX games, from backward compatible classics to the latest new releases, plus DLC and in‑game currency.
- GAME PASS READY — Apply your balance toward XBOX Game Pass Ultimate to play new titles on day one* and access a library of hundreds of high‑quality console games.
- PRE‑ORDER & PRE‑INSTALL GAMES — Use your balance to pre‑order and pre‑download upcoming titles so you’re ready to play the moment they launch.
- NO FEES OR EXPIRATION — XBOX Gift Cards never expire and have no service fees, so your balance is ready whenever you are.
Product prices and availability are accurate as of the date/time indicated and are subject to change. Any price and availability information displayed on Amazon at the time of purchase will apply.
