Microosft CEO Satya Nadella got a decent pay rise in 2024, despite asking for less

microsoft CEO Satya Nadella took home $79.1 million in 2024, up 63% from the previous year, according to reports, despite requesting a pay cut.

Despite his significant compensation package, Nadella had requested a reduction in his cash incentive, following a series of security issues that plagued the company recently and led to a commitment from Microsoft to link executive compensation to security outcomes.

In response, Microsoft’s board of directors agreed to reduce Nadella’s cash incentive to $5.2 million, a reduction of more than 50% from the $10.7 million sum to which he was initially entitled. .

Satya Nadella received $79 million pay package in 2024

“The Board reviewed the Company’s performance and strongly believes that Mr. Nadella provided exceptional leadership and was instrumental in achieving the Company’s extremely strong performance and personally responsible for the continued repositioning of its investments and priorities,” a statement reads. excerpt from a letter read by the Microsoft Compensation Committee.

“It also considered the factors that Mr. Nadella raised in requesting a reduction in his cash incentive and concluded that such an adjustment was appropriate.”

While some of this multimillion-dollar sum came in the form of a payment, Nadella’s shares alone, which are expected to represent about $71 million, made up a significant portion of his earnings, according to a company filing.

At the beginning of calendar year 2024, Microsoft became one of three technology companies now reaching a market capitalization of $3 trillion after becoming a $2 trillion company in 2021.

In the final quarter of its financial year, which ended June 30, Microsoft earned $64.7 billion in revenue, bringing its annualized revenue to $245.12 billion, up from $211.92 billion a year earlier. The tech giant’s share price also rose 31.2% in its most recent full year.

“Our strong performance this fiscal year speaks to both our innovation and the trust customers continue to place in Microsoft,” Nadella said at the time.

Through Reuters