Not getting a salary hike this year? Microsoft CMO has a suggestion for his employees

Microsoft's Chief Marketing Officer, Chris Capossela, has presented a unique solution for employees disheartened by the company's decision to forgo salary raises: focus on boosting the stock price. Capossela's message to employees, as reported by Fortune, emphasised that the stock price is the primary driver for maximising compensation potential. 

His recent personal stock transactions, including a cash-out of $1.55 million earlier this month and an additional $2.85 million sale last week, have raised eyebrows and prompted discussions within the company.

Capossela's message, viewed by Fortune, emphasised the importance of strong quarterly results in enhancing the appeal of Microsoft's stock, thereby increasing overall compensation for employees. “So great quarterly results contribute to making the stock attractive which in turn drives everyone’s total compensation up,” it said. He assured the workforce that Microsoft remains committed to investing substantially in its people and expanding data centre capacity, with the aim of positioning the company favourably in the realm of artificial intelligence (AI) transformation.

While Microsoft continues to channel significant resources into AI and its notable $68.7 billion acquisition of Activision Blizzard, CEO Satya Nadella recently communicated to employees that salary raises for salaried staff will not be offered this year. This decision was attributed to prevailing "macroeconomic uncertainties." 

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Nadella also clarified that he and other members of the senior leadership team would not receive raises or performance-based bonuses. Earlier this year, Microsoft also announced workforce reductions impacting 10,000 employees, further adding to the atmosphere of change and unease within the company.

In response to inquiries from Fortune, a Microsoft spokesperson issued a statement asserting that Capossela's recent stock sale was part of his personal financial planning and did not signify any alteration in his dedication to the company's success.

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