AP Photo/Elaine Thompson
- Microsoft CEO Satya Nadella’s pay rose 63% to $79.1 million for the year to June 30.
- The tech leader requested a lower cash incentive than planned after several cybersecurity breaches.
- Microsoft stock has soared as investors bet it’ll be a big winner from the AI boom.
Microsoft CEO Satya Nadella‘s compensation surged 63% to $79.1 million for the financial year ended June 30 — and would likely have been higher without his intervention.
The software giant’s boss received a $2.5 million salary, $71.2 million of stock awards, a $5.2 million cash incentive, and $170,000 in other compensation, per a proxy filing on Thursday. He was paid a total of $48.5 million in the previous financial year.
Nadella had been in line for a $10.7 million cash incentive, but asked the board for less following several high-profile cybersecurity breaches in the period.
“Mr. Nadella agreed that the Company’s performance was extremely strong, but reflecting on his personal commitment to security and his role as the CEO, asked the Board to consider departing from the established performance metrics and reduce his cash incentive to reflect his personal accountability for the focus and speed required for the changes that today’s cybersecurity threat landscape showed were necessary,” the filing reads.
Nadella’s stock award was worth $39 million for the previous year. Microsoft stock soared more than 30% in the 12 months to June, boosting its market value to north of $3 trillion as well as the value of the CEO’s options.
The stock has enjoyed a stellar run as investors wagered that Microsoft, an investor in ChatGPT maker OpenAI, would be a key beneficiary of the artificial intelligence boom.
Revenue jumped 16% to $245 billion in the period, driving operating income up 24% to $109 billion.
Nadella’s compensation is comparable to that of other Big Tech leaders. Apple CEO Tim Cook was paid $63.2 million for the company’s last financial year, while Nvidia CEO Jensen Huang pocketed $34.2 million.