Microsoft CEO Satya Nadella's Compensation Reaches $96.5 Million as Company Leads AI Revolution

Microsoft's Satya Nadella, who became the company's third CEO in 2014 after Steve Ballmer and founder Bill Gates, has seen his total compensation increase to $96.5 million for the 2024-2025 financial year.

This represents his highest pay package since taking the helm at the technology giant over ten years ago, primarily reflecting Microsoft's significant advancements in artificial intelligence under his leadership.

The company's board highlighted in a shareholder communication that Nadella and his executive team have successfully established Microsoft as a leading global force in AI during what they describe as a "generational technology shift" in the industry.

According to regulatory documents, approximately 90% of Nadella's compensation package consists of Microsoft stock awards, complemented by a $2.5 million base salary. This marks a substantial increase from the $79.1 million he earned in the previous fiscal year.

The compensation filing also revealed increased packages for other top Microsoft executives. Chief Financial Officer Amy Hood received $29.5 million, while Judson Althoff, who now oversees Microsoft's commercial operations, earned $28.2 million.

Microsoft shares have appreciated by roughly 23% this year, largely driven by consistent growth in the company's Azure cloud computing division, which continues to outperform competitors including Amazon Web Services.

Since becoming CEO, Nadella has fundamentally reshaped Microsoft into a cloud-focused, AI-powered enterprise. His early strategic emphasis on cloud technology helped position Azure as one of the leading platforms in the global market.

He has also broadened Microsoft's business portfolio through strategic acquisitions including LinkedIn, GitHub, and gaming powerhouse Activision Blizzard, strengthening the company's position across software development, professional networking, and digital entertainment sectors.

Perhaps one of Nadella's most prescient decisions was supporting OpenAI when it was still relatively unknown. Microsoft's initial investment of $1 billion in OpenAI evolved into a comprehensive partnership, with an additional $10 billion investment as ChatGPT gained widespread popularity.

Currently, AI capabilities powered by OpenAI are integrated throughout Microsoft's product ecosystem, from Office applications to cloud service offerings.

Born and educated in Hyderabad, Nadella earned his engineering degree from Mangalore University in 1988 before pursuing advanced studies in computer science at the University of Wisconsin–Milwaukee.

He began his career at Microsoft in 1992 and steadily advanced through various leadership positions before his appointment as CEO in 2014.