Microsoft CEO Satya Nadella’s ₹665 Crore Pay Package Soars, But Here’s Why He Requested a Cash Salary Cut - Read Now
Microsoft CEO Satya Nadella’s compensation rose to ₹665 crore in 2024. Despite the 63% hike, Nadella requested a reduction in cash salary to support Microsoft’s cybersecurity efforts following global challenges and cyber threats.
During its filing on October 24, Microsoft described the package under which Nadella stands to gain. That will be his biggest compensation in all times. Of this package, worth $79.1 million, came mainly through stock awards; Nadella had $71.2 million. Stock options of $5.2 million also were added with contributions coming in through the Non-Equity Incentive Plan, and all "All Other Compensation," where Nadella earned an extra $169,791.
Nadella's strategic leadership push has propelled the company on several fronts including the AI, Cloud Solution, and Innovation using Copilot projects that inject AI into the Microsoft's world. He led his team to purchase the Gaming behemoth Activision Blizzard through an all-cash purchase worth $68.7 billion in 2022 that furthered the overall strength of the gaming category under its wing.
Why did Nadella End a Cash Salary?
Interestingly, Nadella sought a reduction in his cash salary to $2.5 million from $10 million. This comes on the heels of his endorsement of recent cybersecurity breaches, among them the global "Blue Screen of Death" issue associated with CrowdStrike in July 2024 that crippled services for clients of Microsoft. In April, the U.S. Department of Homeland Security expressed concern over cybersecurity breaches allegedly related to foreign threats from China and Russia.
Cash compensation for Nadella will be used to "bolster" Microsoft's cybersecurity defenses. Microsoft went ahead to "overhaul" its cybersecurity infrastructure after exposing vulnerabilities that these incidents showed. The strategic shift reveals Nadella's personal responsibility and proactivity in upgrading the firm's immunity from cyber attacks.
The Logic Behind Nadella's Handsome Package
Microsoft explains that Nadella's increased compensation has to do with his performance regarding driving innovation, raising the company's capabilities in AI, and aligning cloud solutions with the ever-evolving needs of the customer. His efforts towards Copilot, Copilot+PCs, and projects in Copilot have also well positioned Microsoft as a tough competitor in AI and cloud technology markets.
Bonus payouts also surged 142.16% above base, close to the high end of 200% as Nadella kept stressing AI innovation and upped targets for the company. But it was his maneuverability of Microsoft through all that cybersecurity issues and being successful in the acquisition of Activision Blizzard that had positioned him as the centerpoint of the company's momentum.
