|Kevin Lamarque/Reuters (I would call it "Invisible Strings")|
Microsoft's compensation moves have created a haves-vs.-have-nots culture. Newbies work for comfortable but not overly generous wages, while veterans have a lucrative treasure chest of stock options. Now a new pay scheme, scheduled to go into effect this fall, threatens to make the gulf even wider. If they meet incentive goals, the 120 or so vice-presidents will receive an eye-popping $1 million in salary a year, and general managers, the next level down, will get $350,000 to $550,000, according to a high-ranking source. But the rest of the staff is paid at market rates.Still, Microsoft workers have a sweet deal when compared to public school teachers. This from 2006:
The pay disparity is exacerbated by Microsoft's rating system. The company uses a bell curve to rate employees in each group, so the number of top performers is balanced by the same number of underachievers. But Microsoft has a long history of hiring top-notch computer science grads and high-quality talent from the industry. Under the rating system, if a group works hard together to release a product, someone in the group has to get a low score for every high score a manager dishes out. "It creates competition in the ranks, when people really want community," says a former Microsoft vice-president.