Microsoft boss gets 63% pay rise despite asking for a cut

Microsoft CEO Satya Nadella earned $79.1 million (£61 million) last year, a 63% increase compared to his remuneration the previous year.

This was despite a request from Nadella to reduce an element of his pay package due to cybersecurity flaws at the tech giant, which resulted in him receiving $5 million less than he would have otherwise received.

Like many technology companies, Microsoft has cut thousands of jobs this year, including many at its game division.

But in a power statement Filed with the US financial regulator, the board said the company’s revenue grew 16% in the year to June 30, 2024.

“Mr. Nadella agreed that the company’s performance was extremely strong,” Microsoft’s compensation committee wrote in a letter to shareholders.

He added that he asked them “to consider deviating from established performance metrics and reducing their cash incentive to reflect their personal responsibility” over a series of cyberattacks.

One of those attacks was reported in July 2023 by Microsoft, where hackers gained access to the email accounts of about 25 organizations, including government agencies.

Microsoft said the attack originated in China, although the Chinese embassy in London called it “disinformation.”

The fiscal period extends until June 30, 2024, just a few weeks before the massive internet shutdown which affected Microsoft Windows PCs, causing chaos around the world.

While it was not a cyberattack, Microsoft later in July apologized for another blackout which was caused by a cyber attack.

‘Multiple lives of absolute luxury’

The compensation committee said it cut Nadella’s cash salary by more than half, to $5.2 million.

That represents less than 7% of his total salary.

Most of his salary, $71.2 million, was made up of stock options.

High Pay Center director Luke Hildyard said “on the surface” the gains made sense given Microsoft’s strong financial performance.

“However, we might also ask whether the additional $79 million, on top of last year’s $49 million, for someone already worth hundreds of millions, with more money than he could spend on multiple lives of absolute luxury, is really needed as an incentive reward,” he told the BBC.

“None of Microsoft’s successes would be possible without workers, customers and society at large, so perhaps the gains from that success should be shared a little more equitably,” he added.

Elsewhere in Big Tech, Apple boss Tim Cook earned $63.2 million in 2023, while the CEO of the world’s most valuable company, Nvidia, Jensen Huang, received $34.2 million. dollars in fiscal year 2024.

But none of them come close to Tesla boss Elon Musk, whose pay package could be worth it. up to 56 billion dollars.