Startups

Microsoft CEO Opens Mouth, Inserts Foot On Gender Pay Gap [Updated]

Comment

Image Credits:

Update: Satya Backtracks

After opprobrium rained down from the sky following his comments regarding how women should approach asking for a raise, Microsoft’s CEO Satya Nadella quickly released a memo to Microsoft employees — it was released to the public as well — backtracking on his remarks.

Here it is in full:

All – Today I was interviewed on stage by Maria Klawe at the Grace Hopper Conference – I encourage you to watch the video. It was great to spend time with so many women passionate about technology. I was honored to be a part of it and I left the conference energized and inspired.

Toward the end of the interview, Maria asked me what advice I would offer women who are not comfortable asking for pay raises. I answered that question completely wrong. Without a doubt I wholeheartedly support programs at Microsoft and in the industry that bring more women into technology and close the pay gap. I believe men and women should get equal pay for equal work. And when it comes to career advice on getting a raise when you think it’s deserved, Maria’s advice was the right advice. If you think you deserve a raise, you should just ask.

I said I was looking forward to the Grace Hopper Conference to learn, and I certainly learned a valuable lesson. I look forward to speaking with you at our monthly Q&A next week and am happy to answer any question you have.

Satya

It remains to be seen if his retraction will dampen criticism.

Today at the 2014 Grace Hopper Celebration, Microsoft CEO Satya Nadella hit the skids after Maria Klawe, president of Harvey Mudd — an institution known for its prominence in STEM fields — asked him how young women should ask for a raise.

Nadella replied that not asking for a raise can in fact be “one of the additional superpowers that, quite frankly, women who don’t ask for a raise have. Because that’s good karma. It’ll come back because somebody’s going to know that’s the kind of person that I want to trust. That’s the kind of person that I want to really give more responsibility to. And in the long-term efficiency, things catch up.”

His remarks came across as disjointed, odd, out of place, and wrong: Why tell women to accept lower pay in the short-term for the promise of the system correcting itself later, when that same system has proven that it will act unfairly?

Reaction to his comments on the raise matter were immediately negative:

The Microsoft leader later followed up with a clarifying tweet.

Klawe preceded her question with a story about her recent attendance at the Most Powerful Women Summit, where between 25 and 33 percent of the audience, by her estimate, indicated that they had never asked for a raise. In the United States, women ask for raises less frequently than men, leading to lower starting salaries for many young women that can persist throughout their careers.

Earlier in the discussion, Nadella listed a number of Microsoft leaders who are women — heads of its HR, business development, its CFO, etc. — and the CEO said that he “absolutely expects [one of the women] one of these days to be sitting in this chair,” the implication being that Microsoft will have a female CEO in the future.

It’s fair to say that even if his comments were merely poorly constructed word-salad that failed to convey his actual feelings, Nadella still alienated some women. Needless to say, this is a pretty large unforced error for Nadella. And if his comments were indicative of his actual views on the matter, they reflect poorly on the company he runs and, possibly, its culture. Let’s hope he returns to Redmond with a redoubled drive to further the cause of women in technology.

Here’s the exchange (Transcript via Microsoft):

Maria Klawe: So one of the questions that somebody asked was: How do you — what do you advise to women who are interested in advancing their careers, but they’re not comfortable putting themselves up for promotions or advanced opportunities? And there was an interesting — I just came from the Most Powerful Women Summit in Laguna Niguel, probably some of the other people here also made that trip to Phoenix.

And there was someone who was talking about the fact — it was Mary Barra, who was probably somebody you’ve talked with as well. And she was talking about the fact that she had never asked for a raise.

And then, you know, her interviewer looked out at the audience, which was a lot fewer people than here, and asked, “How many people have never asked for a raise in their life?” And I would say probably a quarter to a third of the attendees put out their hand.

Now, the most interesting one was Warren Buffett. (Laughter.) And don’t ask me why Warren Buffett is at the Most Powerful Women Summit. (Laughter.) Apparently, he’s been doing it for many years.

So, you know, for women who aren’t comfortable with asking for a raise or sort of saying — who aren’t the younger you, let’s say, what’s your advice for them?

Satya Nadella: You know, the thing that perhaps most influenced me in terms of how do you look at the journey or a career, there was this guy whose name was Mike Naples. He was the president of Microsoft when I joined. And he had this saying where he would say, “Look, all HR systems are long-term efficient, short-term inefficient.”

And I thought that that phrase just captured it. Which is, it’s not really about asking for the raise, but knowing and having faith that the system will actually give you the right raises as you go along.

And that, I think, might be one of the additional superpowers that, quite frankly, women who don’t ask for a raise have. Because that’s good karma. It’ll come back because somebody’s going to know that’s the kind of person that I want to trust. That’s the kind of person that I want to really give more responsibility to. And in the long-term efficiency, things catch up.

And I wonder — and I’m not saying that that’s the only approach, I wonder whether taking the long term helps solve for what might be perceived as this uncomfortable thing of, hey, am I getting paid right? Am I getting rewarded right? Because reality is your best work is not followed with your best rewards. Your best work then has impact, people recognize it, and then you get the rewards. And so you have to somehow think that through, I think.

More TechCrunch

The restaurant industry in the U.S. is expected to pass $1 trillion in sales for the first time this year, despite wider economic pressures on consumers. Now Restaurant365, a startup…

Restaurant365 orders in $175M at a $1B+ valuation to supersize its food service software stack 

Venture firm Shilling has launched a €50M fund to support growth-stage startups in its own portfolio and to invest in startups everywhere else. 

Portuguese VC firm Shilling launches €50M opportunity fund to back growth-stage startups

Chang She, previously the VP of engineering at Tubi and a Cloudera veteran, has years of experience building data tooling and infrastructure. But when She began working in the AI…

LanceDB, which counts Midjourney as a customer, is building databases for multimodal AI

Trawa simplifies energy purchasing and management for SMEs by leveraging an AI-powered platform and downstream data from customers. 

Berlin-based trawa raises €10M to use AI to make buying renewable energy easier for SMEs

Lydia is splitting itself into two apps — Lydia for P2P payments and Sumeria for those looking for a mobile-first bank account.

Lydia, the French payments app with 8 million users, launches mobile banking app Sumeria

Cargo ships docking at a commercial port incur costs called “disbursements” and “port call expenses.” This might be port dues, towage, and pilotage fees. It’s a complex patchwork and all…

Shipping logistics startup Harbor Lab raises $16M Series A led by Atomico

AWS has confirmed its European “sovereign cloud” will go live by the end of 2025, enabling greater data residency for the region.

AWS confirms will launch European ‘sovereign cloud’ in Germany by 2025, plans €7.8B investment over 15 years

Go Digit, an Indian insurance startup, has raised $141 million from investors including Goldman Sachs, ADIA, and Morgan Stanley as part of its IPO.

Indian insurance startup Go Digit raises $141M from anchor investors ahead of IPO

Peakbridge intends to invest in between 16 and 20 companies, investing around $10 million in each company. It has made eight investments so far.

Food VC Peakbridge has new $187M fund to transform future of food, like lab-made cocoa

For over six decades, the nonprofit has been active in the financial services sector.

Accion’s new $152.5M fund will back financial institutions serving small businesses globally

Meta’s newest social network, Threads, is starting its own fact-checking program after piggybacking on Instagram and Facebook’s network for a few months.

Threads finally starts its own fact-checking program

Looking Glass makes trippy-looking mixed-reality screens that make things look 3D without the need of special glasses. Today, it launches a pair of new displays, including a 16-inch mode that…

Looking Glass launches new 3D displays

Replacing Sutskever is Jakub Pachocki, OpenAI’s director of research.

Ilya Sutskever, OpenAI co-founder and longtime chief scientist, departs

Intuitive Machines made history when it became the first private company to land a spacecraft on the moon, so it makes sense to adapt that tech for Mars.

Intuitive Machines wants to help NASA return samples from Mars

As Google revamps itself for the AI era, offering AI overviews within its search results, the company is introducing a new way to filter for just text-based links. With the…

Google adds ‘Web’ search filter for showing old-school text links as AI rolls out

Blue Origin’s New Shepard rocket will take a crew to suborbital space for the first time in nearly two years later this month, the company announced on Tuesday.  The NS-25…

Blue Origin to resume crewed New Shepard launches on May 19

This will enable developers to use the on-device model to power their own AI features.

Google is building its Gemini Nano AI model into Chrome on the desktop

It ran 110 minutes, but Google managed to reference AI a whopping 121 times during Google I/O 2024 (by its own count). CEO Sundar Pichai referenced the figure to wrap…

Google mentioned ‘AI’ 120+ times during its I/O keynote

Firebase Genkit is an open source framework that enables developers to quickly build AI into new and existing applications.

Google launches Firebase Genkit, a new open source framework for building AI-powered apps

In the coming months, Google says it will open up the Gemini Nano model to more developers.

Patreon and Grammarly are already experimenting with Gemini Nano, says Google

As part of the update, Reddit also launched a dedicated AMA tab within the web post composer.

Reddit introduces new tools for ‘Ask Me Anything,’ its Q&A feature

Here are quick hits of the biggest news from the keynote as they are announced.

Google I/O 2024: Here’s everything Google just announced

LearnLM is already powering features across Google products, including in YouTube, Google’s Gemini apps, Google Search and Google Classroom.

LearnLM is Google’s new family of AI models for education

The official launch comes almost a year after YouTube began experimenting with AI-generated quizzes on its mobile app. 

Google is bringing AI-generated quizzes to academic videos on YouTube

Around 550 employees across autonomous vehicle company Motional have been laid off, according to information taken from WARN notice filings and sources at the company.  Earlier this week, TechCrunch reported…

Motional cut about 550 employees, around 40%, in recent restructuring, sources say

The keynote kicks off at 10 a.m. PT on Tuesday and will offer glimpses into the latest versions of Android, Wear OS and Android TV.

Google I/O 2024: Watch all of the AI, Android reveals

Google Play has a new discovery feature for apps, new ways to acquire users, updates to Play Points, and other enhancements to developer-facing tools.

Google Play preps a new full-screen app discovery feature and adds more developer tools

Soon, Android users will be able to drag and drop AI-generated images directly into their Gmail, Google Messages and other apps.

Gemini on Android becomes more capable and works with Gmail, Messages, YouTube and more

Veo can capture different visual and cinematic styles, including shots of landscapes and timelapses, and make edits and adjustments to already-generated footage.

Google Veo, a serious swing at AI-generated video, debuts at Google I/O 2024

In addition to the body of the emails themselves, the feature will also be able to analyze attachments, like PDFs.

Gemini comes to Gmail to summarize, draft emails, and more