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Satya Nadella
Microsoft chief executive officer (CEO) Satya Nadella’s total compensation climbed 22% in fiscal 2025 to $96.5 million, the company disclosed in a proxy filing earlier this week.
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The increase reflects the continued rally in Microsoft’s shares, fueled by investor enthusiasm over its artificial intelligence initiatives.
The bulk of Nadella’s package, which is more than $84 million, came from stock awards, while cash incentives totaled about $9.5 million. His base salary remained at $2.5 million. Nearly all of Nadella’s pay is performance-based, with more than 95% tied to metrics such as total shareholder return, revenue growth, and long-term value creation.
The compensation committee said Nadella and his leadership team have “positioned Microsoft as a clear AI leader for this generational technology shift.”
Since he took the helm in 2014, Microsoft’s revenue has more than tripled to $281.7 billion in FY25, net income has quadrupled to $101.8 billion, and earnings per share have risen fivefold to $13.64. The company’s market capitalization has grown by nearly $3.4 trillion, with total shareholder return exceeding 1,000% during his tenure.
Microsoft shares have gained about 23% so far this year, outpacing the S&P 500’s 15% rise. The stock has more than doubled in value over the past three years.
In July, Microsoft reported fourth-quarter results that surpassed Wall Street expectations, with sales climbing 18% — the fastest pace in more than three years — driven largely by demand for its Azure cloud platform, which now contributes more than $75 billion in annual revenue, up 34% year-over-year. Microsoft Cloud overall generated $168.9 billion in revenue in fiscal 2025, up 23%.
Nadella’s pay for 2025 marks his highest since becoming CEO. A year earlier, his compensation rose 63% to $79.1 million. In 2024, he voluntarily asked the board to halve his $10.66 million cash incentive to $5.2 million after the company endured a series of cyberattacks.