Redmond's real Google and Facebook killer? Cash is the new king in Microsoft's battle to recruit and retain talent against the twin gravitational forces of Google and Facebook. The world's largest software company told employees on Thursday that it's giving them pay raises and changing the way it awards bonuses beginning this September. Microsoft ranks third behind Google and Facebook, according to Glassdoor.com, when it comes to average salary for a software engineer. At Microsoft, the average is $86,929, compared with $97,727 at Google and $108,909 at Facebook. A Microsoft product manager earns an average salary of $101,115, compared to $116,134 at Google and $125,000 at Facebook. Additionally, I think it would be prudent if Mr. Steven implements policies which encourage employees to participate/debate and help formulate a unified vision about company's future. Lastly as some people already noted, 90K salary in WA is better than 100K salary of CA; so after all MS is not so disadvantaged to start with.