Microsoft CEO’s compensation grows to $79m despite job cuts

• Microsoft CEO Satya Nadella’s earnings were up 63% in 2024
• Nadella’s total cash incentive was attributed 70% to Microsoft’s financial performance and 30% to operational performance

Microsoft CEO Satya Nadella made $79.1 million over the last financial year, a 63% rise over FY2023.

In terms of annual compensation, this was a ratio of 408 to one when compared to the median employee’s compensation.

Of Nadella’s total cash incentive, 70% was attributed to Microsoft’s financial performance and 30% to operational performance.

“Exceptional” results and earnings

Nadella’s $79.1m in earnings this year reflect the company’s “exceptional” revenue and he would have made even more if not for a requested reduction. He could have made approximately $84 million if not for cybersecurity flaws this year.

He asked to take on this reduction of approximately $5 million as a demonstration of personal accountability.

Even so, Nadella did earn $79.1 million in a year rife with layoffs and cutbacks at Microsoft. Over 1,900 employees were let go in the 2024 fiscal year and another 650 have been since, as cost-cutting continues despite the CEO’s 63% pay rise.

According to Microsoft’s Compensation Committee, Nadella earned a 142.16% bonus due to his work pioneering and navigating AI opportunities, attracting new partners, launching a global initiative to strengthen relationships with “key governments”, and more during the fiscal year.

“Over the course of the year, in recognition of the growing number of cybersecurity threats and attacks from criminal enterprises and well-resourced nation state actors on governments, businesses, and institutions around the world, including Microsoft itself, Mr. Nadella led the organisation to prioritise fundamentals and drove rapid improvements in security practices, reaffirming security as the company’s top priority above all else,” said the committee.

“We are confident in Mr. Nadella’s leadership and ability to continue to strengthen the quality and capabilities of Microsoft’s products and services to protect our customers and build a safer world for all.”

Nadella has been with Microsoft since 1992 and rose through the ranks to SVP of search, portal and advertising by 2008. He has been Microsoft’s CEO since 2014 and became its chairman in 2021.