Satya Nadella’s Compensation Surges To $79 Million Despite Voluntary Bonus Cut

Microsoft’s CEO Satya Nadella is set to receive $79.1 million in total compensation this year, marking a 63 per cent increase over his 2023 earnings. This pay boost follows strong financial gains for Microsoft, which has now tripled its revenue to $245.1 billion and quadrupled its net income to $88.1 billion since Nadella’s appointment as CEO in 2014. Nadella's compensation includes a base salary of $2.5 million and $71.2 million in stock awards tied to performance targets.

Despite this increase, Nadella voluntarily reduced his cash bonus by $5.46 million, lowering it from an initial $10.66 million to $5.2 million. He requested the reduction to account for recent cybersecurity lapses impacting Microsoft’s operations. This decision reflects his commitment to corporate accountability and security. The Biden administration recently criticized Microsoft's handling of cybersecurity after incidents involving both Chinese and Russian hackers gaining unauthorised access to key U.S. government accounts, leading to calls for a review of Microsoft’s security practices.

In a statement, Microsoft’s board emphasised Nadella’s role in delivering consistent financial success and his forward-looking strategy to sustain growth. “Mr. Nadella’s leadership has nearly quadrupled Microsoft’s earnings per share, reaching $11.80,” the company said, highlighting his substantial impact since stepping into the role.