Satya Nadella gets 63% pay rise
Microsoft CEO Satya Nadella earned $79.1 million (£61 million) last year, marking a 63% increase from his previous compensation—despite his own request to reduce one part of his pay package due to cybersecurity issues. This request resulted in a $5 million reduction from what he could have otherwise received.
Microsoft, like many tech firms, has undergone significant workforce cuts, including in its gaming division. However, according to a proxy statement filed with the US financial regulator, the company reported a 16% revenue increase for the fiscal year ending 30 June 2024.
The company’s compensation committee noted Nadella’s acknowledgment of Microsoft’s strong performance but stated he requested a departure from established performance metrics, asking for a reduction in his cash incentive to reflect his accountability over cybersecurity concerns. One of the incidents was a July 2023 breach where hackers accessed the email accounts of 25 organizations, including government agencies, which Microsoft attributed to Chinese actors—claims the Chinese embassy in London dismissed as “disinformation.”
The fiscal period concluded shortly before a major global internet outage impacting Microsoft Windows PCs, followed by an apology from Microsoft for a separate cyber-related outage in July. In response, the compensation committee cut Nadella’s cash pay by more than half to $5.2 million, which accounts for less than 7% of his total pay; the majority, $71.2 million, came from stock options.
Luke Hildyard, director of the High Pay Centre, acknowledged Microsoft’s strong financial performance but questioned the necessity of Nadella’s compensation. “Is $79 million on top of $49 million really necessary as an incentive for someone already worth hundreds of millions?” he asked. “None of Microsoft’s success would be possible without its workers, customers, and society at large, so perhaps the benefits of that success could be shared a little more evenly.”
In comparison, other tech leaders like Apple’s Tim Cook earned $63.2 million in 2023, and Nvidia’s Jensen Huang made $34.2 million in the 2024 fiscal year. Still, none approach the potential $56 billion pay packet of Tesla’s Elon Musk.
