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Microsoft CEO Satya Nadella saw his total compensation surge to nearly $96.5 million for fiscal year 2025, nearly double the amount he was making two years ago.
The chief executive’s total pay was about $79.1 million last year and $48.5 million in 2023. While his base salary has remained flat at $2.5 million, his overall compensation primarily grew because of larger stock awards, which totaled $84.2 million this year, according to a Securities and Exchange Commission (SEC) filing.
“The Committee shares the views we hear from many shareholders, that Mr. Nadella should be compensated in ways that encourage his continued leadership and drive sustained business growth and shareholder value,” Microsoft said in the filing.
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Microsoft CEO Satya Nadella speaks at the Microsoft Build 2025 conference in Seattle May 19, 2025. (Jason Redmond/AFP via Getty Images)
The company added, “In accordance with this view and in contrast to standard market practice, Mr. Nadella’s equity compensation is delivered exclusively through performance stock awards tied to long-term value creation and does not include any time-based equity awards.”
More than 95% of Nadella’s total target compensation was performance-based, according to Microsoft.
“For fiscal year 2025, we set Mr. Nadella’s target performance stock award at $50 million, a level unchanged since fiscal year 2022,” Microsoft said in the filing. “We believe this level reflects Mr. Nadella’s exceptional leadership, the scope of his responsibilities, and the scale, complexity, and performance of Microsoft.”
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The Microsoft headquarters campus in Redmond, Wash. (iStock)
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Other Microsoft executives similarly saw dramatic pay increases, as noted in the filing.
Amy Hood, executive vice president and CFO, earned nearly $29.5 million in fiscal year 2025, up from about $25.8 million last year and around $19.9 million in 2023.
Judson Althoff, executive vice president and CEO of the company’s commercial business, made $28.2 million this year, up from $23 million in 2024 and $16.2 million in 2023.
Bradford Smith, vice chair and president, earned around $28.2 million in fiscal year 2025, compared with $23.4 million last year and $18.1 million in 2023.
Other Microsoft executives similarly saw dramatic pay increases, as noted in the filing. (Reuters/Rick Wilking)
Microsoft’s stock has risen by nearly 25% since the beginning of the year.
Earlier this year, the Washington-based company announced several rounds of job cuts, laying off thousands of its employees.
“We continue to implement organizational changes necessary to best position the company and teams for success in a dynamic marketplace,” a Microsoft spokesperson told FOX Business in July.
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Microsoft did not immediately respond to FOX Business’ request for comment.
FOX Business’ Aislinn Murphy contributed to this report.
