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Microsoft Sets Nadella’s FY25 Pay at $96.5 Million, Citing AI Gains

The board credited AI-driven results for a largely stock-based package ahead of next week’s first‑quarter report.

Overview

  • A proxy filing on Oct. 21–22 disclosed that Satya Nadella’s total compensation rose 22% to $96.5 million from $79.1 million a year earlier.
  • Stock awards worth over $84 million account for nearly 90% of the package, alongside a cash incentive of more than $9.5 million and a $2.5 million base salary.
  • Microsoft’s board said Nadella’s team positioned the company as an artificial intelligence leader and noted that more than 95% of his pay opportunity is performance-based tied to returns and growth metrics.
  • For fiscal 2025, Microsoft reported revenue of $281.7 billion up 15% and net income of $101.8 billion up 16%, and the stock is up about 23% year to date.
  • Other top executives also saw large awards, including CFO Amy Hood at $29.5 million and commercial chief Judson Althoff at $28.2 million, as the company navigates more than 15,000 job cuts and the reported firing of activist employees.