Yup, it seems like parent (as in parent comment, not human parent) has the causality wrong. This won't incentivize anyone to have kids. It will incentivize people to join or stay with the company if they plan on having kids in the future, though, and that's good for the bottom line.
It sounds bad for the company, due to adverse selection.
When I get to the stage in my life where I want this benefit, I'll shift over to MS or similar companies. I'll work there for a few years, take this benefit, and then shift back to a company that comps me with cash once I'm done having children.
It would be pretty silly if a 22 year old decided to work at MS for 15 years, simply to use this benefit for two children they bear at age 31 and 33.
