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Edition: U.S. Article Comments (1) Follow Reuters Facebook Twitter RSS YouTube Read Texas governor calls for prayers for rain amid fires 21 Apr 2011 Americans hold dim view of U.S. economic outlook: poll 21 Apr 2011 Another guy leaves "Idol" as Stefano voted off 21 Apr 2011 British tourist saves toddler in four-story fall 21 Apr 2011 Investigators follow tips in search for Tennessee woman 21 Apr 2011 Discussed 97 Palin returns with feisty, anti-establishment speech 48 Budget vote shows challenge for Boehner, Obama 43 Obama private comments show fight with Republicans Watched VW unveils new sporty Beetle Mon, Apr 18 2011 Size matters at New York Auto Show Thu, Apr 21 2011 Surprise legal defeat for Mattel Thu, Apr 21 2011 SMALL BUSINESS Entrepreneur's Edge: Instant translation on your smartphone When Otavio Good released the first video of his Word Lens translation app in use, it became a viral phenomenon. Since then he's been busy recruiting programmers to help roll it out to include more languages beyond the original Spanish. Full Article | Video New app calculates calories through photos of food Common budget mistakes for tech startups Microsoft plans sweeping pay raises: CEO memo Tweet Share this SEATTLE (Reuters) - Microsoft Corp plans to broadly raise salaries and stock awards to attract and retain top talent, Chief Executive Steve Ballmer said in an internal memo obtained by Reuters on Thursday. Microsoft, which like Silicon Valley... Email Print Related News Obama takes tax plan to Facebook billionaires Wed, Apr 20 2011 NY Times and LA Times each win two Pulitzer Prizes Mon, Apr 18 2011 UPDATE 2-US top court hears Microsoft appeal on i4i patent Mon, Apr 18 2011 UPDATE 1-HSBC proposes pay revamp to appease investors Fri, Apr 15 2011 Cost surge under new Google CEO unnerves Street Thu, Apr 14 2011 Analysis & Opinion The cloud is not just about storage Muni sweeps: Show me the money! Related Topics Technology » Media » Stocks Microsoft CEO Steve Ballmer delivers his keynote address at the Consumer Electronics Show in Las Vegas, January 5, 2011. Credit: Reuters/Rick Wilking SEATTLE | Thu Apr 21, 2011 6:45pm EDT SEATTLE (Reuters) - Microsoft Corp plans to broadly raise salaries and stock awards to attract and retain top talent, Chief Executive Steve Ballmer said in an internal memo obtained by Reuters on Thursday. Microsoft, which like Silicon Valley companies Google and Yahoo risks losing top employees to hot upstarts like Facebook, must improve the way it rewards and support its most talented staff, Ballmer said. "Through our history, we have been THE place people came when they wanted to make a difference in the world through software, hardware and services," the chief executive said in a memo sent to all employees on Thursday morning. "This is as true today as it has been at any time in our history, and the changes we're rolling out today will help ensure Microsoft continues to be the place that top talent comes to change the world." The action follows Google's 10 percent increases this year. Microsoft plans, among other things, "important" compensation increases for divisions with fast-moving markets, including research and development and certain geographies. All employees will have a portion of their stock awards shifted into base salary, according to the memo. Microsoft's shares are at the same level as 10 years ago. The company will tie bonuses and stock awards closer to performance, with the review process also undergoing changes, Ballmer said. Microsoft suspended merit-based pay raises for all employees two years ago, when it laid off 5,000 workers, or about 5 percent of staff, to cut costs. It brought back what it calls "modest" merit raises in 2010. Last year it told employees they would have to contribute to health insurance for the first time, beginning in the next couple of years. The changes will occur around September, according to the memo. Microsoft's shares closed down 0.9 percent at $25.52. (Writing by Edwin Chan; Editing by Steve Orlofsky) (Reporting by Bill Rigby) Technology Media Tweet this Share this Link this Digg this Email Reprints We welcome comments that advance the story directly or with relevant tangential information. We try to block comments that use offensive language, all capital letters or appear to be spam, and we review comments frequently to ensure they meet our standards. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. Comments (1) Daethian wrote: ’sweeping pay rises’ I think you mean ‘raises’ but may an actual copy editor would be helpful. Apr 21, 2011 2:42pm EDT -- Report as abuse See All Comments » Add Your Comment Social Stream (What's this?) © Copyright 2011 Thomson Reuters Editorial Editions: Africa Arabic Argentina Brazil Canada China France Germany India Italy Japan Latin America Mexico Russia Spain United Kingdom United States Reuters Contact Us Advertise With Us Help Journalism Handbook Archive Site Index Video Index Reader Feedback Mobile Newsletters RSS Podcasts Widgets Your View Analyst Research Thomson Reuters Copyright Disclaimer Privacy Professional Products Professional Products Support Financial Products About Thomson Reuters Careers Online Products Acquisitions Monthly Buyouts Venture Capital Journal International Financing Review Project Finance International PEhub.com PE Week FindLaw Super Lawyers Attorney Rating Service Reuters on Facebook Thomson Reuters is the world's largest international multimedia news agency, providing investing news, world news, business news, technology news, headline news, small business news, news alerts, personal finance, stock market, and mutual funds information available on Reuters.com, video, mobile, and interactive television platforms. 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