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No gender pay gap at Microsoft, company says

Date

Matt Day

Microsoft CEO Satya Nadella has landed himself in hot water for comments about women in his workforce before.

Microsoft CEO Satya Nadella has landed himself in hot water for comments about women in his workforce before.

Microsoft says there is essentially no gap between the wages it pays men and women employed in the same roles. Women who work for the software company in the US make 99.8 cents for every dollar made by men with the same job title.

Microsoft is the latest technology giant to release data on employee compensation amid pressure from shareholders.

"These numbers reflect our commitment to equal pay for equal work, and I'm encouraged by these results," Kathleen Hogan, Microsoft's head of human resources, said in a blog post announcing the figures on Monday.

Microsoft disclosed the data after investment firm Arjuna Capital submitted a proposal that, if approved by company shareholders, would have asked Microsoft to commit to closing the gender pay gap. The investment firm withdrew its proposal after Microsoft released the data.

Arjuna has been pressuring the technology industry to disclose its pay practices for men and women and commit to ending any disparities along gender lines.

Amazon.com, after losing its challenge to an Arjuna proposal it raised with regulators, disclosed its own data, which also showed virtually no gender gap, last month.

Microsoft has been in the spotlight on the debate about how the technology industry treats women in its ranks since Chief Executive Satya Nadella said women should trust that the system would reward them fairly, rather than ask for raises. He quickly said those comments were incorrect.

The company has since reported a decline in the percentage of women it employs, to 26.8 percent, as layoffs hit phone hardware units that skewed more heavily female than Microsoft's workforce as a whole. Microsoft employs about 61,000 people in the U.S., nearly 43,000 of them in offices in the Seattle area and elsewhere in Washington state. The company declined to provide the breakdown of the gender pay gap, if any, among its 51,000 employees outside the U.S.

Microsoft also said on Monday that racial and ethnic minorities were compensated equally, dollar for dollar, as their white counterparts with the same job titles the U.S.

The Seattle Times

6 comments so far

  • "Virtally" the same? 99.8%? Is there some part of "equal" that I'm missing??

    Commenter
    Zeli
    Location
    Albury
    Date and time
    April 12, 2016, 3:00PM
    • Yes there is some part you are missing. The match would only be precisely 100% if artificially manipulated to be that figure.

      Commenter
      Dee Aitchess
      Date and time
      April 12, 2016, 9:46PM
    • Well, if you read the linked article you'd see that there are disparities no matter how they slice the data. I'd argue the errors are within a margin of reasonable error but I sense you disagree. Is it also unfair that overall the Asian employees earn $100.60 for each $100 the white bloke makes? I doubt you'd be willing to argue he is, but I'd be overjoyed to see thought-out arguments - and the difference there is triple the difference you're arguing against, so if one is not equal the other can't be either, right?

      Because that's what we're discussing. 20c in $100, or $2 in $1000. Are you advocating all women get an extra 0.2% in their raises next year in the name of equality, regardless of merit?

      Look men and women are not the same. We are equal, not equivalent. 0.2% is a rounding error, and yes, I'd be just fine if the woman doing the same job as me for a nominal salary ends up being a teeny fraction better at it and therefore earns more than me. Maybe she's more efficient, or friendlier, or better at extracting coin from customers. Doesn't matter, if our KPIs are the same, and the starting salary is the same, and she exceeds her KPIs more than I do, she SHOULD earn more, because she is better at her job, right? That doesn't make it unfair to me.

      I get that we're all biased in some way, and we need to work to eliminate those biases. But let's fight the important battles - such as when women and minorities are earning 70% of what men do in the same roles.

      Thought experiment: is my comment any more or less valid if my name is actually Rosa?

      Commenter
      DavidRa
      Location
      Sydney
      Date and time
      April 12, 2016, 11:43PM
    • That's because when Mrs Smith took 2 years off after having little-bundle-of-joy baby Smith her salary was maintained, but Mr Smith who kept toiling away at the office was fortunate enough to get a pay increase on the basis he had worked extremely hard to deliver strong results for the company and was rewarded for meeting & exceeding his KPI's.
      Does anyone seriously think the person who is away from work should be awarded a payrise for taking time off?

      Commenter
      Scotty
      Date and time
      April 13, 2016, 6:55AM
  • Perhaps Sally the Programmer has to go home 30mins early on Tuesdays to pick up little Timmy from daycare, but John the Programmer, her co-worker, doesn't have to do such things, therefore works an extra 30mins on Tuesday and gets more money. Should Sally get paid for leaving 30mins early? Should John be penalised because he doesn't have children?

    Equality.

    Commenter
    e_gauge
    Date and time
    April 12, 2016, 6:00PM
    • Considering that women everywhere are paid the same as men doing the same job why is this news?

      Commenter
      Kit Walker
      Location
      St Kilda
      Date and time
      April 12, 2016, 7:10PM

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