Microsoft staff unhappy over stock benefits cuts

Nine out of ten Microsoft employees are disappointed with recently announced changes to the company's employee stock purchase programme, according to an informal poll.

About 70 per cent of Microsoft employees that responded to a poll, posted by a worker in a personal section of Microsoft's internal corporate website, said they were "very disappointed" with the changes. Another 20 per cent of the 260 workers who took part in the survey said they were "disappointed".

The survey comes a week after Microsoft announced revisions to its employee stock purchase programme, including cutting the discount that employees receive on stock purchases to 10 per cent from 15 per cent, and removing a "look back" feature that based the discount on the price either at time of purchase or six months previous, whichever was lower. Purchases will now be made quarterly, with the price based on the last day of the period.

About 98 per cent of the 260 employees that responded to the survey said the changes would cut their overall compensation, with 37 per cent saying the change would be "significant".

One respondent wrote: "I believe we should cut costs, but when cutting costs that affect employee morale, the result is poor productivity, which goes straight to the bottom line."

A Microsoft representative noted that the survey was not company-sponsored and "is simply a vehicle for employee discussion".

"Microsoft stands by the changes, which were a result of a routine review of the Microsoft's benefit package and industry standards," the representative said in an email. "We believe they are the right move for us now in order to ensure we maintain fiscal responsibility while offering employees a competitive, comprehensive benefits package and more value to our shareholders."

A growing number of tech firms are looking at making tweaks to their stock-based compensation programs. Although much of the attention has gone to stock option programmes, following a ruling that companies must expense the cost of giving options, many companies are also looking at programmes that allow workers to buy company stock at a discount.

A 2003 Deloitte study found that 46 per cent of tech firms were considering reducing the discount offered to employees, while nearly half of firms were thinking of eliminating the "look back" feature.

Ina Fried writes for CNET News.com