Satya Nadella’s pay package jumps to $79.1 million for fiscal 2024, 63% increase from last year

Microsoft’s CEO, Satya Nadella, saw his pay package soar to $79.1 million for the fiscal year 2024, marking a hefty 63 per cent increase from the previous year. The boost comes as Microsoft strengthens its position in the fast-evolving world of artificial intelligence (AI) tools.

According to Microsoft’s regulatory filing on Thursday, roughly 90 per cent of Nadella’s compensation was in company shares, making it his largest payout since 2014, the year he first took the helm as the company’s third chief executive.

Back in 2014, his total pay hit $84 million, but this year’s package comes at a time when Microsoft is undergoing significant strategic shifts in AI and cybersecurity.

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Personal pay cut amid cybersecurity accountability
Interestingly, Nadella’s compensation could have been even higher. The board revealed that he voluntarily requested a pay reduction of about $5 million. This decision was tied to his sense of accountability for the company’s recent changes around cybersecurity, reflecting efforts to address challenges following several high-profile security breaches.

Microsoft’s board acknowledged that the company has been under increased scrutiny, especially from the US Cyber Safety Review Board, after a series of embarrassing software hacks.

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Despite these challenges, the board highlighted Nadella’s role as pivotal in both driving Microsoft’s strong performance and repositioning the company’s investments. They credited his leadership for the firm’s success in navigating an increasingly competitive tech landscape, particularly with AI becoming a central focus for Microsoft’s future.

Pay bumps across Microsoft’s leadership
Microsoft’s leadership team as a whole saw significant pay increases. Amy Hood, the company’s Chief Financial Officer, received $25.8 million, a 30 per cent increase from last year. Meanwhile, President Brad Smith earned $23.4 million, reflecting a 29 per cent bump.

These pay increases suggest the company’s focus on rewarding its top executives for guiding the firm through a period of rapid transformation and opportunity in AI.

As Microsoft continues to invest heavily in AI and addresses cybersecurity risks, these executive pay hikes highlight both the achievements and challenges faced by the tech giant. Nadella’s leadership, particularly his ability to steer Microsoft through complex shifts, has been recognised with one of his most lucrative pay packages yet.