Satya Nadella, CEO of Microsoft received a compensation package totaling $48.5 million in 2023, marking the lowest figure he has received in the last three years. This comes months after Nadella told full-time salaried staff their pay was frozen due to a slowdown in revenue growth.<\/p>\n
Nadella’s pay package comprised $2.5 million in salary, unchanged; $39.23 million in stock; $6.4 million in non-equity incentives; and $360k for all other compensation. He fell slightly short in his target for financial results but exceeded targets for operational results, meaning he met 85.5 percent of the goals set.<\/p>\n
Microsoft’s revenue grew by 11 percent to $211.9 billion in fiscal 2023, operating income edged up to $88.5 billion from $83.38 billion, and net income was flat at $72.36 billion. Cloud revenue alone grew 22 percent to a staggering $111.6 billion, albeit slower than recent years. More than 95 percent of Nadella’s annual target compensation goal is performance-based and 70 percent of the annual cash incentive is related to meeting pre-established financial metrics.<\/p>\n
Nadella’s pay ratio to the median employee is currently 250 to 1. This is down from 289 to 1 in 2022. The company also revealed that the annual total compensation for the median employee, excluding the CEO, was $193,770, in contrast to Nadella’s $48,512,537. This is an improvement from the previous 289 to 1. Other top executives within Nadella’s leadership team received their own significant compensation packages in 2023.<\/p>\n
Other executives in Nadella’s C-suite also saw their pay decrease in fiscal 2023. CFO Amy Hood was paid $19.9 million; top sales office Judson Althoff received $16.2 million; President Brad Smith got $18.1 million; and Christopher Young, who is exec veep for business development, strategy and ventures, pocketed $9.8 million.<\/p>\n