Under his leadership since 2014, Microsoft has transformed into a powerhouse in cloud computing and artificial intelligence, aided by major acquisitions such as LinkedIn, and GitHub, and its deep partnership with OpenAI.
Washington: Microsoft Chief Executive Satya Nadella has received his largest-ever pay package since taking the helm more than a decade ago, earning $96.5 million (approximately ₹840 crore) in the fiscal year 2025, up 22 per cent from $79.1 million last year.
The India-born executive’s compensation includes $84 million in stock awards, $9.5 million in cash incentives, and a $2.5 million base salary, according to the company’s annual report released on Tuesday. Roughly 90 per cent of Nadella’s package is tied to Microsoft’s share performance.
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Under his leadership since 2014, Microsoft has transformed into a powerhouse in cloud computing and artificial intelligence, aided by major acquisitions such as LinkedIn, GitHub, and Activision Blizzard, and its deep partnership with OpenAI.
So far in 2025, Microsoft’s shares have risen 23 per cent, outpacing the broader S&P 500’s 15 per cent gain, and have more than doubled over the past three years. The company’s market capitalisation has surged by nearly $3.4 trillion since Nadella became CEO, with total shareholder returns exceeding 1,500 per cent.
Microsoft is due to report its first-quarter earnings next week, following a strong end to the previous fiscal year when sales rose 18 per cent—the company’s fastest growth in more than three years—driven by the Azure cloud business and rising demand for AI infrastructure.
Other senior executives also saw pay increases. Chief Financial Officer Amy Hood earned $29.5 million, while Chief Commercial Officer Judson Althoff received $28.2 million.
Despite Microsoft’s robust financial performance, the company has faced internal turbulence. It laid off more than 15,000 employees this year and dismissed several staff members who protested its contracts with the Israeli military. Nadella acknowledged in a July memo that the layoffs had “been weighing heavily” on him.
Nadella’s salary has steadily increased from $918,000 in 2014 to $2.5 million this year, though most of his compensation remains stock-based. The CEO’s pay far exceeds the median S&P 500 CEO compensation of $17.1 million, according to the 2025 Equilar–Associated Press study, placing him among the top five highest-paid executives in the United States, above Apple CEO Tim Cook at $74.61 million.
Published: 23 Oct 2025, 10:33 am IST
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