Satya Nadella's $96.5 Million Compensation Package Reflects Microsoft's AI and Cloud Success

Microsoft CEO Satya Nadella's compensation reached $96.5 million in fiscal 2025, marking a 22% increase from the previous year's $79.1 million. His compensation package comprises $84 million in stock awards, $9.5 million in cash incentives, and a base salary of $2.5 million, with approximately 90% of the total tied to Microsoft's stock performance.

Since taking the helm as CEO in 2014, Nadella has successfully transformed Microsoft into a global powerhouse in artificial intelligence and cloud computing. His strategic vision has guided the company through significant acquisitions including LinkedIn, GitHub, and Activision Blizzard. Additionally, he established a crucial long-term partnership with OpenAI, resulting in the integration of generative AI capabilities across Microsoft's product lineup.

Microsoft's stock has shown impressive growth, climbing 23% in 2025 so far and more than doubling over the past three years. The company is scheduled to release its fiscal first-quarter results next week. In its most recent quarterly report, Microsoft exceeded expectations for both earnings and revenue, with sales increasing by 18% - the fastest growth rate in over three years. This growth was primarily driven by the Azure cloud division and increasing demand for AI infrastructure.

Other executives also received compensation increases. Chief Financial Officer Amy Hood earned $29.5 million, while Judson Althoff, who was recently appointed to lead Microsoft's commercial business, received $28.2 million.

Despite these financial successes, Microsoft has faced workforce challenges, including laying off more than 15,000 employees in 2025 and terminating employees who protested against the company's contracts with Israel. Nadella addressed these difficult decisions in a July memo to staff, acknowledging that the job cuts had "been weighing heavily" on him.

For fiscal year 2024, Nadella's total compensation saw a significant 63% increase to $79.1 million from $48.5 million in 2023, primarily due to stock awards. His stock-based compensation rose to approximately $71 million from $39 million the previous year, coinciding with Microsoft's market value surpassing $3 trillion. During that fiscal year, the company's shares gained around 31%, bolstered by Microsoft's investment in OpenAI and its growing leadership in generative AI.