Microsoft's Satya Nadella Gets a Massive 63% Pay Hike —But What’s Behind the Increase?

Satya Nadella, CEO of Microsoft Corp., received a significant 63% increase in his pay package for fiscal year 2024, totaling $79.1 million, according to a recent regulatory filing. This boost underscores Microsoft’s commitment to advancing its AI initiatives, where Nadella’s leadership has played a pivotal role. Approximately 90% of his compensation was allocated in Microsoft shares, marking this as his largest pay award since he earned $84 million in 2014, the year he became the tech giant’s third CEO.

Microsoft’s board noted that Nadella had requested a reduction in his pay by about $5 million as a gesture of accountability amid rising cybersecurity challenges. The company has faced increased scrutiny for several software vulnerabilities, drawing attention from organizations like the U.S. Cyber Safety Review Board.

Microsoft’s compensation committee praised Nadella’s "exceptional leadership," highlighting his role in strengthening the company’s overall performance and directing strategic investments and priorities in AI and cybersecurity.

Other top executives at Microsoft also saw salary increases. Chief Financial Officer Amy Hood’s compensation rose by 30% to $25.8 million, while President Brad Smith received a 29% increase, bringing his total to $23.4 million.