Microsoft CEO Satya Nadella’s Compensation Package Hits ₹665 Crore, but He Requested a Cut in Cash Salary—Here’s Why
Microsoft CEO Satya Nadella's compensation package has reached ₹665 crore, a significant increase. However, he voluntarily reduced his cash salary—discover the reasons behind this decision and its implications for the company’s cybersecurity efforts.
Satya N
Microsoft Chairman and CEO Satya Nadella’s compensation package for 2024 has surged by 63% to ₹665 crore ($79.106 million), based on a company filing with the US SEC. Notably, the document reveals that Nadella requested a reduction in the cash component of his salary.
According to the filing dated October 24, Nadella’s pay package for the year reached $79,106,183, marking the highest amount he has ever received. This figure includes stock awards valued at $71,236,392, $5.2 million from a non-equity incentive plan, and $169,791 categorised as "All Other Compensation."
Why the Salary Cut?
Nadella opted to lower his cash salary from $10 million to $2.5 million, taking “personal accountability” for recent cybersecurity issues. These challenges include a significant technical glitch, dubbed the 'Blue Screen of Death,' which affected services for clients in July 2024, as well as alerts from the US Department of Homeland Security regarding breaches linked to China and Russia.
The cash reduction from Nadella's salary will be redirected towards enhancing Microsoft’s cybersecurity measures. The company is committed to a "complete overhaul" of its cybersecurity protocols.
Why Such a High Pay Package?
Microsoft attributed Nadella's substantial pay package to several achievements during his tenure, including driving bonuses up to 142.16%, with a maximum limit of 200%. His leadership has fueled innovation in products like CoPilot, Copilot+PCs, and other AI developments while also adapting the organisation to address cybersecurity challenges. Additionally, his successful acquisition of gaming company Activision Blizzard for $68.7 billion in 2022 further highlights his impact at the helm of Microsoft.
