‘Microsoft literally paid someone $632k to leave’: Social media user breaks down the mega payout

According to the user, the employee had spent 24 years at Microsoft and was eligible for the 15/55 retirement stock plan, which accounted for more than half of the total payout.

Written by Shubham Chhabra

Updated: August 20, 2025 22:59 IST

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A former Microsoft employee reportedly received a payout of $632,000 to leave the company, according to a user post shared on Blind, a workplace community app. According to the user, the employee had spent 24 years at Microsoft and was eligible for the 15/55 retirement stock plan, which accounted for more than half of the total payout.

Breakdown of the Payout

The detailed payout shared included continuation pay of $40,000 (equivalent to four regular paychecks after being laid off), a severance lump sum of $143,000, 401k matching of $4,000, six months of COBRA premiums worth $14,000, a FY25 bonus of $39,000, FY25 stock vesting of $12,000, and retirement stock vesting over the next four years valued at $350,000. Unemployment benefits for 26 weeks in Washington added another $30,000, bringing the total to $632,000 before taxes, which are expected to take around 30% of the payout.

The employee mentioned that Microsoft covered the unemployment benefits on their behalf and expressed satisfaction with the package, noting it was influenced by the special circumstances of the 15/55 retirement stock plan.

Community Reactions: Deserved or Excessive?

Responses on Blind varied. One user said, “If he spent 24 years at MSFT, I feel he deserves that money. Many others will have switched companies or retired earlier.” Another commented, “Lucky guy! That money should go to someone. I’m happy he took a small portion of the undeserved money from Microsoft.”