Internal Microsoft Documents Detail Pay Scales

Microsoft's internal pay guidelines show exactly how much the company will pay new engineering hires, according to documents obtained by Business Insider. The guidelines, updated in May, break down salary ranges, stock awards, and bonuses for every level from entry-level engineers to the company's most senior technical talent.

The documents come with an important caveat: recruiters can get approval to pay more when competing for exceptional candidates. At Microsoft's highest tier, Level 70 'distinguished engineers' can earn up to $408,000 in annual salary. But the real money comes from stock: these hires get up to $1.9 million in stock when they join, plus annual stock awards reaching $1.476 million.

The company uses different pay scales depending on location. Engineers in expensive markets like San Francisco get higher ranges than those at Microsoft's Redmond headquarters, where most hiring happens. For entry-level engineers at Level 57, Microsoft offers salaries between $83,000 and $108,000 in its main markets, with higher ranges of $95,800 to $124,600 in expensive areas like San Francisco. These new hires get modest stock awards of $5,000 to $13,000 and signing bonuses up to $9,000.

The company considers levels 57 through 59 as entry-level positions. The compensation jumps significantly as engineers advance. By Level 63, when engineers reach senior status, salaries range from $145,000 to $237,600 depending on location, with stock awards reaching $220,000.

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