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Microsoft Proxy Sets Nadella’s 2025 Pay at Record $96.5 Million

Directors cite pay-for-performance tied to AI gains across Azure, Copilot.

Overview

  • Satya Nadella’s total compensation rose 22% from $79.1 million to $96.5 million for fiscal 2025, coinciding with a roughly 23% year-to-date rise in Microsoft shares.
  • The package includes about $84.2 million in stock awards, a $9.5 million cash incentive, a $2.5 million base salary, and roughly $196,000 in other compensation.
  • Microsoft’s board said more than 95% of Nadella’s compensation opportunity is performance-based, pointing to shareholder returns and growth metrics.
  • The company reported fiscal 2025 revenue up 15% to $281.7 billion and net income up 16% to $101.8 billion, with Azure and Copilot highlighted as key drivers alongside the OpenAI partnership.
  • The disclosure lands as Microsoft navigates workforce strain, including more than 15,000 job cuts in 2025 and terminations of employees who protested contracts related to the Israeli military.