Microsoft CEO Satya Nadella earned $96.5 million in fiscal 2025, up 22 per cent from $79.1 million last year. The package includes $84 million in stock awards, $9.5 million in cash incentives, and a $2.5 million base salary, with 90 per cent tied to stock performance.
Nadella, who became Microsoft's CEO in 2014, has overseen the company's transformation into a global leader in artificial intelligence and cloud computing. His leadership has driven, including high-profile acquisitions like LinkedIn, GitHub, and Activision Blizzard, and a long-term partnership with OpenAI that has integrated generative AI features across Microsoft products.
Microsoft shares have climbed 23 per cent so far in 2025. The company's stock has more than doubled over the past three years. Microsoft is set to report its fiscal first-quarter results next week. In its last quarterly report, the company posted better-than-expected earnings and revenue, with sales rising 18 per cent, its fastest growth in over three years, led by the Azure cloud division and growing demand for AI infrastructure.
Other senior executives also received pay increases. Chief Financial Officer Amy Hood earned $29.5 million, while Judson Althoff, recently appointed head of Microsoft's commercial business, received $28.2 million.
Microsoft has faced workforce challenges, including the layoff of more than 15,000 employees in 2025 and the termination of employees protesting the company's contracts with Israel. Nadella acknowledged in a July memo to staff that the job cuts had "been weighing heavily" on him.
In FY 2024, Nadella's total compensation jumped 63 per cent to $79.1 million, up from $48.5 million in 2023, driven largely by stock awards. His stock-based pay rose to about $71 million from $39 million the previous year, as Microsoft's market value crossed $3 trillion. The company's shares gained around 31 per cent during the fiscal year, boosted by Microsoft's investment in OpenAI and its growing lead in generative AI.
