Microsoft CEO Satya Nadella’s total comp rises to $96.5 million

Microsoft CEO Satya Nadella is getting a big boost in compensation as the company’s stock prices continue to rise, fueled by the boom in artificial intelligence.

Nadella’s total compensation for fiscal 2025 rose 22% to $96.5 million from $79.1 million last year, Microsoft said. filing power of attorney after the close of regular trading on Tuesday. This includes more than $84 million in stock awards and more than $9.5 million in Nadella’s cash incentives.

The payout schedule is highly dependent on Microsoft’s stock performance. So far in 2025, Microsoft’s stock price is up 23%, outpacing the S&P 500’s gain of 15%. The value of the shares has more than doubled in the last three years.

Microsoft is scheduled to report results for its fiscal first quarter next week. In its fourth-quarter announcement in July, the company reported better-than-expected earnings and revenue; Sales rose 18%, the fastest growth in more than three years. Microsoft Azure businesses are fueling growth as companies’ need for cloud infrastructure to meet AI demand increases.

In fiscal 2024, Nadella’s salary increased by 63% from the previous year, with 90% of his salary coming from stock awards. Nadella was entitled to $10.66 million in cash incentives last year, but asked the board’s compensation committee to reduce that figure to $5.2 million as a result of a series of cyber attacks the company suffered.

Despite Microsoft’s strong financial and stock performance, the company has seen turmoil among its workforce in recent months. In July, Nadella wrote a memo to employees saying the company’s decision to eliminate more than 15,000 jobs in 2025 “burdens him heavily.”

Microsoft also fired several activist employees who protested the company’s work with the Israeli military.

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