Satya Nadella is netting a record $96.5 million pay package as Microsoft's AI bets paid off

Satya Nadella, the CEO of Microsoft, has reached a remarkable milestone in his compensation, receiving a staggering $96.5 million pay package for fiscal year 2025. This figure marks a significant 22% increase from the $79 million he earned in 2024, as disclosed in the company's recent proxy filing. The majority of Nadella's earnings, approximately $84.2 million, stem from stock awards linked to Microsoft's impressive market performance during the AI boom. In addition, he received a cash bonus of $9.5 million and a base salary of $2.5 million, along with benefits totaling around $196,000. Microsoft's board emphasized that over 95% of Nadella's compensation is performance-based, highlighting key metrics such as shareholder returns and company growth. For the fiscal year, Microsoft reported a 15% increase in revenue, reaching $281.7 billion, and a 16% rise in net income, totaling $101.8 billion. The board noted that these results affirm Nadella and his leadership team’s role in establishing Microsoft as a frontrunner in the artificial intelligence landscape. Nadella has been at the helm of Microsoft since 2014, and his annual compensation has seen a dramatic rise over the years, starting from about $18 million in 2015, escalating to $55 million in 2022, and then to $79 million in 2024. Under his leadership, Microsoft became the second company to achieve a $3 trillion market capitalization, following Apple. The tech giant is also recognized for its aggressive investments in AI, notably being the largest investor in OpenAI with over $13 billion invested since 2019. Although Microsoft has recently experienced some divergence from OpenAI, the company’s commitment to AI remains strong. Mustafa Suleyman, Microsoft's AI CEO, indicated plans for substantial investments in the company’s AI chip cluster to bolster self-sufficiency in AI capabilities. This year, Microsoft’s shares have surged by about 23%, reflecting the company's robust performance in the tech market.