Microsoft CEO Satya Nadella speaks on CNBC’s “Squawk Box” outside the World Economic Forum in Davos, Switzerland, on January 22, 2025.
Jerry Miller CNBC
microsoft CEO Satya Nadella’s pay has increased significantly as the company’s stock continues to rise, driven by the boom in artificial intelligence.
Microsoft said in a proxy filing Tuesday after the close of regular trading that Nadella’s total salary for fiscal year 2025 was $96.5 million, up 22% from $79.1 million last year. This includes more than $84 million in stock compensation and more than $9.5 million in cash incentives for Mr. Nadella.
Paid plans are roughly tied to Microsoft’s share performance. So far in 2025, Microsoft stock has risen 23%, outpacing the S&P 500’s 15% rise. The stock price has more than doubled in the past three years.
Microsoft is scheduled to report its fiscal first quarter results next week. The company reported better-than-expected profits and sales in its fourth-quarter disclosure in July, with sales increasing 18%, the fastest growth in more than three years. Microsoft Azure Business is expanding as enterprises’ cloud infrastructure needs increase to meet AI demands.
Mr. Nadella’s salary for fiscal year 2024 was up 63% from $48.5 million the previous year, with 90% of his compensation coming from stock-based compensation. Mr. Nadella was eligible for $10.66 million in cash incentives last year, but asked the board’s compensation committee to reduce that amount to $5.2 million as a result of the series of cyberattacks the company endured.
Despite Microsoft’s strong financials and stock price, the company has seen turmoil among its employees in recent months. In a memo to employees in July, Mr. Nadella said the company was “heavily burdened” with cutting more than 15,000 employees in 2025.
Microsoft also fired several activist employees who protested its cooperation with the Israeli military.
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