In a recent filing with the SEC, it was revealed how much Microsoft CEO Satya Nadella’s annual compensation was. According to a report by CNBC, Nadella earned $79.1 million for the fiscal year that ended June 30. The number was significantly higher than the $48.5 million Nadella earned in the previous year. As per the proxy filing, most of Nadella’s compensation package was in the form of stock.
Interestingly, Nadella requested that his salary be cut in light of some high-profile security issues Microsoft faced. “Mr. Nadella agreed that the Company’s performance was extremely strong, but reflecting on his personal commitment to security and his role as the CEO, asked the Board to consider departing from the established performance metrics and reduce his cash incentive to reflect his personal accountability for the focus and speed required for the changes that today’s cybersecurity threat landscape showed were necessary,” Microsoft’s board of directors noted n the filing.
The company also revealed Nadella’s target performance stock award for 2024. “We set Mr. Nadella’s target performance stock award at $50,000,000, which we believe is the appropriate level of equity compensation for a leader with his extraordinary capabilities, responsibilities, and in recognition of Microsoft’s extraordinary scale, complexity, and performance,” said Microsoft.
Security ‘issues’ at Microsoft
Earlier this year, Microsoft revealed that threat actors from Russia had accessed email accounts of some of its top executives. In June, Microsoft reportedly told senior executives that their compensation would partly be dependent on the company achieving certain cybersecurity targets.
However, the board remains confident about Nadella’s efforts in improving security practices at Microsoft. With the looming threats in mind, the board said that “Nadella led the organisation to prioritise fundamentals and drove rapid improvements in security practices, reaffirming security as the Company’s top priority above all else.”
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
