Microsoft CEO Sees Major Compensation Increase
Satya Nadella, the CEO of Microsoft, will see his total compensation grow to nearly $96.5 million in the fiscal year 2025, almost double what he earned two years ago.
Last year’s total compensation was around $79.1 million, and it’s estimated to be approximately $48.5 million in 2023. Although his base salary stayed the same at $2.5 million, the overall compensation rose significantly due to increased stock options, totaling about $84.2 million this year, as noted in a Securities and Exchange Commission filing.
Microsoft mentioned that the compensation committee aligns with shareholder sentiments that Nadella’s pay should reflect his ongoing leadership and foster sustainable business growth and value for shareholders.
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The company added that, unlike conventional market practices, Nadella’s equity compensation will rely entirely on performance equity tied to long-term value, without including time-based equity compensation.
More than 95% of Nadella’s target compensation is performance-based, according to Microsoft.
For fiscal year 2025, Microsoft has set his target performance stock compensation at $50 million, which remains unchanged from fiscal year 2022. This figure is believed to aptly reflect his exceptional leadership and the company’s size and performance.
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The filing also revealed that other top executives at Microsoft received substantial pay increases.
Amy Hood, the Executive Vice President and CFO, will earn almost $29.5 million in fiscal year 2025, up from around $25.8 million the previous year and $19.9 million in 2023.
Judson Althoff, the executive vice president and head of commercial operations, earned $28.2 million this year, a rise from $23 million in 2024 and $16.2 million in 2023.
Vice Chairman and President Bradford Smith’s income has also climbed to about $28.2 million in 2025, compared to $23.4 million last year and $18.1 million in 2023.
Since the year’s start, Microsoft stock has climbed nearly 25%. However, the company has also seen several rounds of layoffs, shedding thousands of jobs earlier this year.
A Microsoft spokesperson stated in July that organizational changes are ongoing to ensure the company is positioned for success in a changing market.
At this time, Microsoft has not provided further comments regarding these details.
