The acronym FAANG was made up/popularized by Jim Cramer, a TV finance guy, intended to be "these companies are going to DOMINATE tech with the BIGGEST MARKET CAPS". Today the market caps are (in billions) 479 (Meta), 2719 (Apple), 1450 (Amazon), 300 (Netflix), 1566 (Alphabet) + 2166 (MSFT). Cramer tried to make an updated version happen in 2021: (Meta, Apple, Microsoft, Amazon, Alphabet) because Netflix did not explode and Microsoft did not disappear in the way he had predicted.

So yes, IMO Microsoft sits pretty in the no-longer-accurate acronym FAANG.

Why? Their stock performs just as well, and they pay better than Amazon, better benefits, all with a reputation for legendary good WLB.

Amazon is hardly a FAANG

I always understood FAANGS to be defined by their engineering culture and the innovative approach to problems, not just salary.

Hence the selection of companies.

Better pay? Not for new hires. Most recent reports I have seen (blind, levels.fyi) and my own experiences have shown Amazon skyrocket to the top paying FAANG, with the first two years heavily skewed toward cash and backloading RSUs. I am surprised out of all the FAANGs you picked the generally lowest paying one as the counter example.