Microsoft boss gets 63% pay rise despite request for reduction

Microsoft CEO Satya Nadella earned $79.1 million (£61 million) last year, a 63% increase on his salary the year before.

That was despite a request from Mr Nadella to reduce one element of his pay package due to cyber security failures at the tech giant – which resulted in him being paid $5 million less than he would otherwise have received.

Like many tech companies, Microsoft has cut thousands of jobs this year, including many jobs gaming division.

But at one proxy statement filed with the US financial regulator, the board said the company’s revenue grew 16% in the year to June 30, 2024.

“Mr. Nadella agreed that the company’s performance was extremely strong,” Microsoft’s compensation committee wrote in a letter to shareholders.

It added that he asked them to “consider deviating from established performance measures and reducing his financial incentive to reflect his personal responsibility” over a number of cyber attacks.

One such attack was reported in July 2023 by Microsoft, giving hackers access to the email accounts of around 25 organizations, including government agencies.

Microsoft said the attack originated in China, although the Chinese embassy in London called it “disinformation.”

The fiscal period runs until June 30, 2024 – just weeks before the massive internet outage which affected Microsoft Windows PCs and caused chaos around the world.

Although that was not a cyberattack, Microsoft apologized later in July another glitch which was caused by a cyber attack.

‘Multiple lives of absolute luxury’

The compensation commission said it cut Mr. Nadella’s cash compensation by more than half to $5.2 million.

That represents less than 7% of his total wages.

The majority of his pay, $71.2 million, was stock options.

High Pay Center director Luke Hildyard said the revenue made “superficially” sense given Microsoft’s strong financial performance.

However, we might also wonder whether the extra $79 million, on top of last year’s $49 million, for someone already worth hundreds of millions, with more money than he could spend over several lifetimes of absolute luxury, is really necessary if reward for his life. stimulus,” he told the BBC.

“None of Microsoft’s success would be possible without employees, customers and broader society, so perhaps the rewards of that success need to be shared a little more evenly,” he added.

Elsewhere in the big tech sector, Apple boss Tim Cook earned $63.2 million in 2023, while the CEO of the world’s most valuable company Nvidia, Jensen Huang, received $34.2 million in the 2024 fiscal year.

But none of them come close to Tesla boss Elon Musk, whose pay package could be worth it up to $56 billion.