Microsoft's Nadella Gets 63% Pay Rise to $79M Despite Security-Related Pay Cut Request

BigGo Editorial Team
Microsoft's Nadella Gets 63% Pay Rise to $79M Despite Security-Related Pay Cut Request

In an interesting twist of corporate compensation, Microsoft CEO Satya Nadella's total compensation package has significantly increased despite his own request for a reduction, highlighting the complex nature of executive pay structures in tech giants.

The Numbers Behind the Rise

  • Total compensation increased 63% to $79.1 million in fiscal 2024
  • Stock awards make up approximately $71 million of the total package
  • Cash incentive reduced by over 50% from $10.7 million to $5.2 million
  • Previous year's compensation was $48.51 million

Security Accountability and Leadership

Nadella's request for a pay reduction came in response to several security challenges that Microsoft faced recently. This led to:

  • Implementation of security-linked executive compensation
  • Making security a top priority across Microsoft operations
  • Tying employee bonuses and promotions to security performance

Microsoft's Strong Performance

Under Nadella's leadership, Microsoft has achieved remarkable milestones:

  • Reached $3 trillion market capitalization in early 2024
  • Generated $245.12 billion in annualized revenue
  • Saw a 31.2% increase in share price during the fiscal year
  • Stock price grew from $327 to $427 year-over-year

Executive Team Compensation

Other Microsoft executives also saw significant increases in their compensation:

  • President Brad Smith: 29% increase to $23.4 million
  • CFO Amy Hood: 30% increase to $25.8 million

The Microsoft Board's Compensation Committee praised Nadella's exceptional leadership and his role in the company's strong performance, despite agreeing to his request for a reduced cash incentive. This compensation package, while substantial, still falls short of Nadella's highest-ever compensation of $84 million received in 2014 when he first became CEO.