Microsoft CEO Nadella receives $96.5 million pay package

Published 21/10/2025, 22:48
© Reuters.

Investing.com -- Microsoft CEO Satya Nadella received a $96.5 million pay package for fiscal 2025, his highest compensation since becoming CEO over a decade ago, as the company’s board cited exceptional progress in artificial intelligence.

About 90% of Nadella’s compensation is in Microsoft (NASDAQ:MSFT) shares, with a base salary of $2.5 million. This represents a significant increase from the $79.1 million he received in the previous fiscal year.

The compensation committee stated that the results "demonstrate that Satya Nadella and his leadership team have positioned Microsoft as a clear artificial intelligence leader for this generational technology shift."

Under Nadella’s leadership since 2014, Microsoft has achieved remarkable financial growth, more than tripling revenue to $281.7 billion, quadrupling net income to $101.8 billion, and quintupling earnings per share to $13.64. During his tenure, Microsoft’s total shareholder return has exceeded 1500%, with market capitalization increasing by almost $3.4 trillion.

The company reported 15% revenue growth and a 17% increase in operating income for fiscal year 2025. Microsoft Cloud revenue increased 23% to $168.9 billion, while Azure revenue surpassed $75 billion, up 34% year-over-year.

Nadella’s compensation structure is heavily performance-based, with more than 95% of his annual target compensation tied to performance metrics. Unlike standard market practice, his equity compensation is delivered exclusively through performance stock awards linked to long-term value creation rather than including time-based equity awards.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.