Microsoft CEO Satya Nadella Receives 63% Pay Rise in 2024
Pay Package Includes Stock Awards and Non-Equity Incentive Plan Compensation
Microsoft’s Chairman and Chief Executive Officer Satya Nadella has been awarded a 63% pay rise in 2024, according to a regulatory filing. The head of the US tech giant received a total compensation package worth US$79.11 million, up from US$48.51 million in the previous year.
Increased Pay Package Amid AI Boom
The significant increase in Nadella’s pay package comes as Microsoft focuses on ensuring the world benefits from the broad technological shift to artificial intelligence (AI), while mitigating its risks. His pay package included a US$2.5 million salary, US$71.24 million in stock awards, and US$5.2 million in non-equity incentive plan compensation, which is the highest so far since he was paid US$84 million in 2014.
Pay for Performance Philosophy
The Compensation Committee noted that it has executed a pay for performance philosophy, with over 95% of the annual target compensation opportunity for the chief executive being performance-based. Nadella had requested a reduction in the cash incentive portion of his pay due to recent security issues, and the committee approved a fiscal year 2024 cash incentive of US$5.2 million, which represents a more than 50% reduction compared to what he would have been awarded based on the combined assessment of strong financial and operational performance.
Other Senior Executives’ Compensation
Other senior executives at Microsoft also received significant pay packages. Amy Hood, Executive Vice President and Chief Financial Officer, received US$25.8 million, up from US$19.9 million in the previous year. Judson Althoff, Executive Vice President and Chief Commercial Officer, received US$23.05 million, compared to US$16.2 million in the prior year.
Conclusion
The pay package awarded to Microsoft’s CEO reflects the company’s focus on performance-based compensation and its commitment to ensuring the world benefits from the technological shift to AI while mitigating its risks. The company’s senior executives’ compensation packages also demonstrate a strong focus on performance-based incentives, with over 95% of the annual target compensation opportunity for the chief executive being performance-based.
FAQs
- What is Microsoft’s CEO, Satya Nadella, paid?
Nadella received a total compensation package worth US$79.11 million in 2024. - What is the percentage increase in Nadella’s pay from the previous year?
The pay package includes a 63% increase from the previous year. - What is the main focus of Microsoft’s pay package?
The company has a pay for performance philosophy, with over 95% of the annual target compensation opportunity for the chief executive being performance-based. - Who are other senior executives at Microsoft that received significant pay packages?
Amy Hood, Executive Vice President and Chief Financial Officer, and Judson Althoff, Executive Vice President and Chief Commercial Officer, received significant pay packages as well.