Microsoft CEO Satya Nadella received significant salary increase in 2024, yet there’s potential for more

During its latest fiscal year, which concluded on June 30, 2024, Microsoft experienced a mix of challenges and successes. Nevertheless, the tech giant proceeded with a substantial salary increase for its CEO, Satya Nadella. Recent disclosures revealed that his total compensation for the 2024 fiscal year reached an impressive $79.1 million in both cash and stock.

This information came to light through a filing with the U.S. Securities and Exchange Commission (as reported by CNBC). This figure marks a significant increase over the $48.5 million he earned in the previous fiscal year.

As is common with many CEOs of major publicly traded companies, a substantial portion of Nadella’s compensation was provided through Microsoft stock options. He was also entitled to approximately $10.66 million in cash bonuses and incentives. However, according to the SEC’s report, Nadella voluntarily requested a reduction in his cash bonuses to a total of $5.2 million.

This decision stemmed from Microsoft’s commitment to accountability following a series of security breaches during the 2024 fiscal year. Notably, in summer 2023, a hacking group from China accessed Outlook email accounts in Europe and the U.S. Subsequently, in early 2024, a Russian-based group managed to infiltrate the email accounts of several Microsoft executives.

In response to these security issues, Microsoft initiated extensive revisions to its security protocols, declaring in May that safeguarding its systems was the company’s highest priority. In June, they announced that executive bonuses would be adjusted based on each leader’s individual contributions towards enhancing security measures.

The recent SEC filing highlighted that although Nadella acknowledged the company’s “extremely strong”performance overall during the fiscal year, he expressed a desire for the Board of Directors to decrease his cash incentives to reflect his personal accountability for addressing the urgent changes necessitated by the evolving cybersecurity landscape.

Even with this adjustment to his cash bonuses, it’s evident that Nadella remains one of the highest-paid CEOs in the technology sector.

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