Microsoft CEO Satya Nadella's annual pay jumps to $96.5 million

Microsoft's Chief Executive Officer, Satya Nadella, is set to receive a significant increase in his annual compensation, reflecting the company's robust stock performance driven by the ongoing surge in artificial intelligence. In a recent proxy filing, Microsoft disclosed that Nadella's total pay for the fiscal year 2025 has risen by 22% to $96.5 million, up from $79.1 million the previous year. This impressive figure comprises over $84 million in stock awards and more than $9.5 million in cash incentives. The compensation structure is heavily linked to Microsoft's share performance, which has seen a remarkable 23% increase in 2025, outpacing the S&P 500's 15% rise. In fact, Microsoft's stock has more than doubled in value over the last three years. As Microsoft prepares to announce its fiscal first-quarter results next week, the company previously reported exceptional fourth-quarter earnings in July, with an 18% rise in sales, marking the fastest growth in over three years. The expansion of Microsoft Azure has played a crucial role in this growth, as businesses increasingly seek cloud solutions to accommodate the escalating demand for AI capabilities. Nadella's pay saw an astounding 63% increase last fiscal year, jumping from $48.5 million. Notably, stock awards constituted about 90% of his compensation. Last year, he was eligible for a cash incentive of $10.66 million but opted to reduce it to $5.2 million following a series of cyberattacks that impacted the company. Despite the positive financial trajectory, Microsoft has faced internal challenges, including a significant layoff of over 15,000 employees, which Nadella acknowledged has weighed heavily on him. Additionally, the company has seen the dismissal of several employees who protested against its collaboration with the Israeli military, highlighting ongoing tensions within the workforce.