Microsoft CEO Nadella’s annual compensation surges to $96.5M

Microsoft CEO Satya Nadella saw his total compensation increase to nearly $96.5 million for fiscal year 2025, nearly double the amount he was receiving two years ago.

Total CEO pay was about $79.1 million last year and $48.5 million in 2023. While his base salary remained flat at $2.5 million, his total compensation increased primarily due to larger stock awards, which totaled $84.2 million this year, according to a Securities and Exchange Commission (SEC) filing.

“The Committee shares the views we hear from many shareholders that Mr. Nadella should be compensated in ways that encourage his continued leadership and drive sustainable business growth and shareholder value,” Microsoft said in the filing.

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“Consistent with this opinion and in contrast to standard market practice, Mr. Nadella’s stock compensation is delivered exclusively through performance stock awards tied to long-term value creation and does not include any time-based stock awards,” the company added.

More than 95% of Nadella’s total compensation target was performance-based, according to Microsoft.

“For fiscal year 2025, we set a target performance stock award for Mr. Nadella at $50 million, a level that has not changed since fiscal year 2022,” Microsoft said in the filing. “We believe this level reflects Mr. Nadella’s exceptional leadership, the scope of his responsibilities, and the size, complexity and performance of Microsoft.”

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Microsoft headquarters in Redmond, Washington. (Istock)

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Likewise, other Microsoft executives saw significant pay increases, as noted in the filing.

Amy Hood, executive vice president and chief financial officer, earned approximately $29.5 million in fiscal 2025, up from about $25.8 million last year and about $19.9 million in 2023.

Judson Althoff, executive vice president and chief business officer for the company, made $28.2 million this year, up from $23 million in 2024 and $16.2 million in 2023.

Bradford Smith, vice president and president, earned about $28.2 million in fiscal 2025, compared to $23.4 million last year and $18.1 million in 2023.

Likewise, other Microsoft executives saw significant pay increases, as noted in the filing. (Reuters/Rick Wilking)

Microsoft shares have risen by about 25% since the beginning of the year.

Earlier this year, the Washington-based company announced several rounds of job cuts, laying off thousands of its employees.

“We continue to implement the organizational changes necessary to put the company and teams in the best position to succeed in a dynamic marketplace,” a Microsoft spokesperson told FOX Business in July.

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Microsoft did not immediately respond to FOX Business’ request for comment.

FOX Business’ Aislinn Murphy contributed to this report.