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'Is That Legal?': Why One Section of Microsoft's DEI Report Is Raising a Lot of Questions

In a 2023 Diversity and Inclusion Report, Microsoft touted its progress advancing the DEI agenda at the company, with one section in particular drawing fierce criticism. 

In the part of the report detailing what the tech giant calls “Pay Equity,” Microsoft not only admits, but boasts about how it discriminates against white employees. 

The following data draws from total pay, which includes base salaries, annual bonuses, and stock awards, and the company explains that rewards-eligible employees are those who’ve worked for Microsoft for more than 90 days in a fiscal year.

As of September 2023, inside the US, all racial and ethnic minority groups who are rewards eligible combined earn $1.007 total pay for every $1.000 earned by US rewards-eligible white employees with the same job title and level and considering tenure.

Specifically, for those who are rewards eligible, US Black and African American employees earn $1.004; Hispanic and Latinx employees earn $1.004; and Asian employees earn $1.012 for every $1.000 earned by US rewards-eligible white employees with the same job title and level and considering tenure.

As of September 2023, inside the US, women who are rewards eligible earn $1.007 total pay for every $1.000 earned by rewards-eligible employees who are men and have the same job title and level and considering tenure.

As of September 2023, outside the US, women who are rewards eligible earn $1.003 total pay for every $1.000 earned by men who are rewards eligible with the same job title and level and considering tenure in these combined geographies.

Aligned with last year’s report for pay equity data outside the US, we have included all countries/regions with 30 or more employees and at least five men and five women to ensure statistical reliability.

This year, that means we’re reporting on 59 countries/regions outside the US.* The employee population of these 59 countries/regions plus the US population represents 99.8% of our global Microsoft workforce. (Microsoft)

Many on X questioned the legality of such a practice.