Tech is an ever-competitive field where new technologies can spur mass movements of employees into a new sector. While Microsoft is thriving, it too faces the challenges of keeping employees and preventing other companies from poaching them. One way to keep employees happy is to simply reward them well… which is why Microsoft CEO Satya Nadella has revealed a new compensation package.

In an email to employees on Monday, Microsoft CEO Satya Nadella confirmed a new package that will allow the company to offer competitive compensation compared to rivals. GeekWire was given a copy of the memo, which shows Microsoft plans to increase its Annual Stock ranges by 25 percent or more.

This will be for all employees who are level 67 and below. Microsoft’s plan is to reward employees and ease growing reports of unrest and people leaving the company. Nadella points out this will nearly double the global merit budget:

“Specifically, we are nearly doubling the global merit budget. Merit budgets will vary by country, based on local market data, and the most meaningful increases will be focused where the market demands and on early to mid-career levels. We are also increasing Annual Stock ranges by at least 25 percent for all levels 67 and below.”

What it Means

Of course, the obvious question is what are level 67 employees? Well, these are the normal staffers at Microsoft. Most hires the company makes are levels 59 to 65. In other words, this compensation package is for all employees aside from partners, general managers, vice presidents, and other executives.

With this increase, Microsoft is hitting back against rivals who have been increasing their own payment schemes in recent years.

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