Microsoft CEO Satya Nadella’s Compensation Package Rises to ₹665 Crore Despite His Request for a Cash Salary Cut

Microsoft Chairman and CEO Satya Nadella experienced a significant increase in his compensation package this year, soaring by 63% to ₹665 crore ($79.106 million),  and based on the company’s filing with the US Securities and Exchange Commission (SEC). However, the filing also revealed that Nadella requested a reduction in the cash component of his salary.

According to the October 24 filing, Nadella’s pay package for 2024 marks a record high, reflecting a 63% increase from the previous year. The breakdown of the package indicates that stock awards accounted for the majority of his compensation, totaling $71,236,392, with an additional $5.2 million from the Non-equity Incentive Plan and $169,791 in All Other Compensation.

Reason for Cash Salary Cut
Nadella’s request to reduce his cash salary from $10 million to $2.5 million stemmed from his desire to take “personal accountability” for the company’s recent “cybersecurity challenges.” These issues include a global technical glitch known as the ‘Blue Screen of Death’ that disrupted services for clients in July 2024, as well as warnings from the US Department of Homeland Security regarding potential breaches from China and Russia in April 2024.

The cash savings from Nadella’s salary cut are intended to enhance the company’s cybersecurity initiatives, and Microsoft has committed to a comprehensive overhaul of its cybersecurity measures.

 Rationale Behind the Substantial Pay Package
Microsoft praised Nadella for his numerous achievements during his tenure, including driving bonuses up to 142.16%, with a cap of 200%. His leadership has fostered innovation across various initiatives, including CoPilot and Copilot+PCs, as well as advancements in artificial intelligence (AI) development and cloud solutions for customers. Notably, he also played a key role in the successful acquisition of gaming company Activision Blizzard for $68.7 billion in 2022.