AI bubble inflates Microsoft CEO pay to $96.5M

"The chairman and chief executive of the software and cloud megacorp was handed total compensation of $96.5 million for Microsoft's fiscal 2025, up almost 22 percent on the prior year. This includes a $2.5 million base salary, unchanged since 2023, $84 million in stock awards, $9.5 million in a non-equity incentive plan, and $196,000 for all other compensation. But he's worth it, Microsoft told shareholders in its Proxy Statement. Since Nadella became top dog in 2014, Microsoft has tripled revenue, quadrupled net income, and quintupled diluted earnings per share (EPS)."

"In accordance with this view and in contrast to standard market practice, Mr Nadella's equity compensation is delivered exclusively through performance stock awards tied to long-term value creation and does not include any time-based equity awards. Including his annual cash incentive, more than 95 percent of Mr Nadella's annual total target compensation opportunity was performance-based. For fiscal year 2025, we set Mr Nadella's target performance stock award at $50 million, a level unchanged since fiscal year 2022."

Satya Nadella received $96.5 million in total compensation for Microsoft's fiscal 2025, a nearly 22 percent increase from the prior year. The package included a $2.5 million base salary, $84 million in stock awards, $9.5 million in a non-equity incentive plan, and $196,000 in other compensation. Microsoft reported $281.7 billion in sales, $101.8 billion net profit, and diluted EPS of $13.64. More than 95 percent of Nadella's target compensation was performance-based and tied to stock performance that doubled in three years amid AI expectations. Azure revenue exceeded $75 billion, rising 34 percent.

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