Microsoft CEO Satya Nadella's compensation rises 63% to $79.11 million despite his request for a pay cut

What conscionable happened? In a script that nan immense mostly of america will ne'er experience, Microsoft leader Satya Nadella has seen his take-home salary summation 63% compared to past twelvemonth contempt nan CEO requesting nan magnitude he receives beryllium reduced. While Nadella's net was trim by 50%, different forms of his compensation accrued significantly, bringing his full to $79.11 cardinal successful fiscal 2024, up from $48.51 cardinal a twelvemonth earlier.

Nadella requested that his salary beryllium reduced arsenic a reflection of his accountability successful narration to nan company's information failures, including nan awesome cyberattacks against Microsoft's and nan CrowdStrike fiasco.

The incidents led to Nadella making information a "top priority" supra each other astatine Microsoft, which now ties worker bonuses and promotions to information performance.

Microsoft's committee compensation committee agreed to Nadella's request, reducing his rate inducement from nan $10.7 cardinal he was group to person by much than 50% to $5.2 million.

Like astir CEOs, nan mostly of Nadella's compensation – astir 90% – comes successful nan shape of banal awards. This twelvemonth saw those awards summation from $39 cardinal successful 2023 to astir $71 cardinal arsenic Microsoft's marketplace headdress passed $3 trillion.

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"The Board reviewed nan Company's capacity and firmly believes that Mr. Nadella provided exceptional activity and was some captious successful achieving nan highly beardown capacity of nan Company and personally responsible for nan ongoing repositioning of its investments and priorities," nan Microsoft Compensation Committee wrote successful a filing.

"It besides considered nan factors that Mr. Nadella raised successful requesting a simplification of his rate inducement and concluded that specified an accommodation was appropriate."

Surprisingly, this isn't nan largest grant Nadella has received during his clip astatine nan caput of Microsoft. He was paid $84 cardinal successful 2014, nan aforesaid twelvemonth he became nan Redmond giant's 3rd main executive.

Other Microsoft execs besides received a salary bump. President Brad Smith's compensation was up 29% to $23.4 million, while Chief Financial Officer Amy Hood saw a 30% summation to $25.8 million.

Microsoft's valuation has accrued by much than tenfold successful nan decade since Nadella took complete from Steve Ballmer. Its stock value has continued to turn successful caller times, up from $327 1 twelvemonth agone to $427 today. It is presently nan third-largest institution successful nan world by marketplace cap, sitting down Nvidia and leader Apple.