- Cloud-computing firm Veeva is giving the majority of its workforce a one-time 5% salary increase.
- The company is excluding its C-Suite execs and anybody who makes over $300,000 from the raise.
- This salary hike comes among a well-documented struggle for talent in the cloud-computing industry.
- See more stories on Insider’s business page.
Tech companies are scrambling to keep their employees happy, including $48 billion cloud-computing firm Veeva Systems.
In its quarterly earnings call on Wednesday, Veeva CEO and founder Peter Gassner announced that the company was giving the majority of its workforce a one-time 5% salary increase, owing to “highly unusual inflationary pressures and market dynamics.”
“The increase does not apply to members of our leadership team and highly compensated individuals earning more than $300,000,” Gassner said in his prepared remarks. “We’ve never done this type of off-cycle and uniform salary increase before, but it’s the right thing for Veeva, our employees, and our customers.”
Notably, Gassner indicated that the raises will ultimately be paid for by price hikes in some pieces of its business: “Customers will see a modest increase in professional services costs over time as salary increases flow through to billing rates. We are not raising prices for our software or data products at this time.”
Veeva, a Silicon Valley-based cloud provider for the life sciences industry, beat Wall Street expectations with revenues for the quarter of some $456 million, up from about $354 million the same time last year.
In May, Veeva said in a regulatory filing that it had about 3,000 employees in November 2019, at which point the median employee at the company was making $131,535 in total annual compensation. The same filing said Gassner himself was making $345,833 at the time, giving a ratio of the CEO’s salary to the median employee’s of 2.6 to 1.
As Gassner alluded to, this pay bump comes amid a war in the cloud industry for top tech talent, even as the so-called “Great Resignation” sees people quitting their jobs in droves. This leaves companies vulnerable to losing top talent, and they’re doing what they can to keep their employees satisfied in their current position.
“Demand for talent is high and has accelerated quickly this year,” Gassner said this week. “We compete well in this environment by being an employee-centric company with a clear vision, strong ethics, and a reputation for product excellence, and customer success.”
Even so, pay is a hot-button issue in tech in general, with Apple employees recently making moves to promote salary transparency. Meanwhile, Insider recently reported that an Amazon recruiter was able to offer certain candidates as much as $715,400 in compensation to lure them away from their current employer.
At the same time, companies have taken other kinds of moves to keep employees happy, healthy, and productive amid the ongoing pandemic: Microsoft this year introduced a new remote-work perk that let employees expense up to $1,200 per year on anything from student loan payments to gardening equipment.
Beyond the raise, Veeva recently added additional employee perks like rolling out a “work anywhere” policy in September 2020 allowing their employees to work from home or in the office for as long as they please, eliminating location-based pay, and opening up more offices across the United States.
These perks may win major points from developers on the job market, with companies like Google and Facebook receiving flack as they ponder pay cuts for remote workers. For example, Facebook CEO Mark Zuckerberg has said that employees who move out of Silicon Valley for “lower-cost cities” could expect a pay cut.