Microsoft CEO Satya Nadella Sees 63% Pay Rise Despite Request for Reduction Amid Cybersecurity Concerns
Microsoft’s CEO, Satya Nadella, received a $79.1 million compensation package for the past fiscal year, marking a 63% increase from the previous year, despite his personal request for a reduction due to cybersecurity incidents. The pay package includes a substantial $71.2 million in stock options, with a reduced cash component of $5.2 million—over half of his cash incentive was cut following his appeal to the board.
Microsoft’s board attributed the pay hike to the company’s impressive 16% revenue growth for the fiscal year ending June 30, 2024, as noted in a proxy statement filed with the U.S. Securities and Exchange Commission (SEC). Despite Nadella’s suggestion to adjust his pay due to cybersecurity vulnerabilities, including a notable July 2023 cyber attack where hackers reportedly accessed 25 organizations’ email accounts, the board underscored Microsoft’s strong performance.
Luke Hildyard, Director of the High Pay Centre, questioned the necessity of Nadella’s elevated earnings, given his significant wealth. He suggested that the success of large tech firms like Microsoft should be more broadly shared with workers, customers, and society.
In comparison, other tech leaders saw substantial, though comparatively smaller, earnings: Apple’s Tim Cook took home $63.2 million in 2023, and Nvidia’s Jensen Huang received $34.2 million. Tesla CEO Elon Musk still leads with a potential $56 billion payout.
