Microsoft CEO Satya Nadella's annual salary surged to $79.1 million in the 2024 fiscal year. The number was significantly higher than the $48.5 million Nadella earned in the previous year. As per the proxy filing, most of Nadella’s compensation package was in the form of stock. Microsoft's market value surpassed $3 trillion, with shares gaining around 31.2% in the fiscal year ending June 30, 2024. However, Nadella's cash incentive of $5.2 million (approx Rs 437200738) was less than the $10.7 million he was eligible for as he asked for a reduction following multiple cybersecurity breaches reported during the fiscal year, according to the filing.
Interestingly, Nadella requested that his salary be cut in light of some high-profile security issues Microsoft faced. “Mr. Nadella agreed that the Company’s performance was extremely strong, but reflecting on his personal commitment to security and his role as the CEO, asked the Board to consider departing from the established performance metrics and reduce his cash incentive to reflect his personal accountability for the focus and speed required for the changes that today’s cybersecurity threat landscape showed were necessary,” Microsoft’s board of directors noted n the filing.
The company also revealed Nadella’s target performance stock award for 2024. “We set Mr. Nadella’s target performance stock award at $50,000,000, which we believe is the appropriate level of equity compensation for a leader with his extraordinary capabilities, responsibilities, and in recognition of Microsoft’s extraordinary scale, complexity, and performance,” said Microsoft.
