Microsoft pays AI talents up to $1.4 million in stock amid mass layoffs: What leaked data reveals about pay divide

For Microsoft employees, the biggest part of their paycheck is no longer about how much they take home each month.

Recently, an internal spreadsheet of compensation details came to light, revealing how the technology giant is rewarding workers as it races to build its artificial intelligence business. The data show that while base salaries and bonuses can run into the hundreds of thousands of dollars, the biggest rewards come in the form of stock.

Microsoft AI talent gets million-dollar stock awards

This is particularly striking for those who work in Microsoft's Cloud + AI organisation. Data shared by Business Insider shows that in these organisations, while employees draw base salaries ranging from $111,000 to $450,000, cash bonuses can reach up to $300,000. But stock awards went as high as $1.4 million. The numbers are particularly crucial given that the company had about 223,000 employees as of June 30 and announced another round of layoffs in July.

The contrast points out how Microsoft is trimming its workforce in some sectors while offering lucrative equity packages to retain AI talent

Currently, Microsoft is pouring billions of dollars into AI infrastructure while competing with Meta, Google, OpenAI, Anthropic and others for engineers and researchers. In that competitive market, stock awards allow the company to offer competitive compensation packages without making major changes to annual salaries.

Microsoft’s pay gap reveals who matters most in the AI race

Another important factor to consider is how different units within the same company are compensated.

Azure employees reported stock awards of up to $294,000, while Microsoft AI employees reported awards as high as $140,000. In Xbox, the maximum reported stock award was $65,000. Cloud + AI, by contrast, reached $1.4 million.

This shows how the company is prioritising its employees. More than one's seniority or experience level, the tech giant is evaluating employees based on how strategically important their skills are to the AI race.

Stock also serves as a retention tool for Microsoft. Employees who receive substantial equity have a financial incentive to stay with the company as those shares vest, while the value of the award can rise if Microsoft's stock performs well.

Still, the spreadsheet should not be treated as an official Microsoft payroll database. The company had 223,000 employees on June 30, so a spreadsheet with nearly 600 submissions provides a very small snapshot. Business Insider also removed entries it considered anomalous. Microsoft declined to comment.

Even then, the data offers a picture of how the AI economy is moving the job market. And how big tech giants are taking measures to retain their best employees when the talent is scarce