GUIDE 2022

What Is the Average Microsoft Principal Product Manager Salary?

Wondering what the average Microsoft principal product manager salary is?

Microsoft is one of the largest hiring companies both in the U.S and worldwide. Due to its size and market value, there is an established hierarchy of roles and job titles that indicate superiority and rank.

One leadership job title that ambitious Microsoft employees have their eyes on is that of a principal product manager. 
Principal Product Managers are qualified specialists who oversee the development and launch of new products on the market. 
In this guide, we discuss the salary estimates that Microsoft principal product managers expect to secure at their job as well as the various factors that influence their earnings. 
Let’s get right into it. 

The Average Principal Product Manager Microsoft Salary

The salary projection for a Principal Product Manager ranges from $126,261 to $168,822 per year. The top 25% of Microsoft Principal Product Managers earn $241,000 or more each year.
On average, the base income for a Microsoft Principal Product Manager’s salary is $218,361. In total, a Principal Product Manager at Microsoft expects to earn an annual salary of $266,187.

Credits: Glassdoor

Several elements influence individual salaries, including bonuses and additional compensation. Additional compensation may include stock options, cash performance bonuses, and profit-sharing.

Stock and Cash Bonuses for Microsoft Principal Product Managers

Salaries for Microsoft Principal Product Managers include additional pay in stock and cash bonuses. The average cash bonus is $49,095, but ranges from $22,000 to $196,000. Stock bonuses range from $33,000 to $278,000 with an average of $83,219.

Stock Bonuses

Every year in August, Microsoft distributes stock awards. Over five years, your new awards vest at a rate of 20% annually. Older awards vest at 10% every six months for five years. The taxable income uses the stock’s fair market value at each vesting date.
On-hire stock awards vest at a rate of 25% per year for four years, with one vesting each year on your employment anniversary. Most on-hire stock award shares mature one year after your employment begins.

Cash Bonuses

Employees receive annual cash bonuses in September of each year, ranging from 0 to 40% of qualified pay. A good performance rating gets employees a target cash bonus, while exceptional performance gets you an above-target cash bonus. 
On-hire cash bonuses for new employees are handed out within the first 30-60 days of employment.

Microsoft Principal Product Manager Salary Perks and Benefits

Some Microsoft salary perks include 401(k) matching, Flexible Spending Accounts, Health Savings Accounts, and on-site healthcare. 
Other incentives for Microsoft Principal Product Managers include healthcare, savings & investment plans, paid family leave, product & service discounts, networking opportunities, donation programs, paid time off, and educational resources.

Principal Product Manager Salary Comparisons

Compared to the national average, the Microsoft Principal Product Manager compensation is higher. Below, you see how two well-known rivals’ Principal Product Manager salaries stack up against Microsoft’s.

Microsoft vs. The National Average

In the US, the average annual Principal Product Manager salary is $161,784, lower than the average Microsoft Principal Product Manager salary.

Microsoft vs. Adobe

At Adobe, the average Principal Product Manager salary is $220,241, higher than the average Microsoft Principal Product Manager salary.

Microsoft vs. Oracle

Oracle’s average salary for Principal Product Managers is $147,858, lower than the national average.

Microsoft vs. Amazon

The average salary for Principal Product Managers at Amazon is $173,872, lower than Microsoft’s.

Microsoft vs. ServiceNow

At ServiceNow, the average compensation for a Principal Product Manager is $174,015, higher than the national average but lower than Microsoft’s equivalent salary.

Salary Comparisons with Other Microsoft Positions

Compared to similar positions at Microsoft, Principal Product Managers receive higher compensation. Senior Product Managers, Senior Program Managers, and Product Managers all start with lower average salaries than Principal Product Managers.

Principal Product Manager vs. Senior Product Manager

An average Microsoft Senior Product Manager makes $188,924 per year, including a $157,515 base salary and a $31,409 bonus. The total pay is $35,753 higher than the national average for a Senior Product Manager.

Principal Product Manager vs. Senior Program Manager

A Senior Program Manager at Microsoft has an average annual salary of $147,462, including a $132,303 base salary and $15,159 average additional bonuses. This salary is in line with the national average of $147,000 for Senior Program Managers.

Principal Product Manager vs. Product Manager Salaries

The typical Microsoft Product Manager earns $145,360 per year, which combines a basic salary of $124,822 plus bonuses of $20,538. This total pay is $29,367 higher than the national average for a Product Manager.

Factors Influencing Microsoft Principal Product Manager Salaries

Various factors impact the pay scale for Principal Product Managers. Your professional background, location, and seniority contribute to your overall salary. 

Professional Background

The level of education and experience required of a Principal Product Manager ranges depending on the company. Most companies look for candidates with six or more years of experience as a product manager with a successful track record in building products that have delivered growth at scale.
To get a job as a Principal Product Manager at Microsoft, you must have a degree in computer science or a related field. Experience in software development and management usually results in higher salaries as well.
Recruiters also value candidates who complete a specialized course in product management. Be sure to check out our PMHQ Product Management Certification Courses to stand out among competitors when applying for a principal product manager role.
Product Manager Certification

Location

A Principal Product Manager earns more while working at companies in big cities because they face higher living costs. In addition, big cities provide better access to professional development opportunities, thereby influencing their financial compensation.

Additional Compensation

Your total rewards include more than your pay. Your compensation includes benefits, work-life effectiveness, and career development opportunities. Other bonuses and stock opportunities affect your base pay as a Microsoft Principal Product Manager. 
Employees personalize healthcare and insurance coverage at current rates. In most cases, vacation is earned after several months of employment, and you become eligible for paid time off and family leave. 

Seniority

If you want to ensure that you are starting at the highest possible base salary as a Principal Product Manager, your best bet is to stick with the company and work your way up over time.
Your rank and seniority are two vital factors influencing your salary at Microsoft and any other company. As you gain more experience as a Principal Product Manager, your salary will increase until you reach the highest level of seniority.

Average Microsoft Principal Product Manager Salary Key Takeaways

The Microsoft Principal Product Manager position is your chance to impact a world-class company with one of the most recognizable products on Earth. 
We see that the variation in salaries is dependent on several factors. The level of experience, seniority of the position, location, and other variables all influence the amount of money earned by a Microsoft Principal Product Manager. 
Microsoft offers a competitive salary structure with excellent growth potential. No matter what role you assume or how long you stay with the company, Microsoft is an excellent company to begin or continue your career in Principal Product Management.

Josh Fechter
Josh Fechter is the co-founder of Product Manager HQ, founder of Technical Writer HQ, and founder and head of product of Squibler. You can connect with him on LinkedIn here.