Microsoft's CEO, Satya Nadella, Received a 66% Raise This Past Fiscal Year

This percentage equated to a total of $42.9 million.
Fabienne Lang

You might be lucky enough to enjoy a pay raise every year, but it'll most likely be a small increase.

Microsoft's CEO, Satya Nadella, who has the position since 2014, brought in a whopping raise of $42.9 million this past fiscal year. That's a 66% increase from the year before. 

The company reasons that this is part of a regular raise, crediting Nadella for his performance as their chief executive officer. 


Satya Nadella's pay package

The pay raise can be explained by looking at Nadella's base salary, which went up from $1.5 million up to $2.3 million. Furthermore, his overall cash and equity bonuses increased as well. 

However, the large majority of the jump in his salary came from a one-time, performance-based stock option award that Nadella was given when he first started the role in 2014. 

Under his five year watch, Microsoft's market cap has shot up to over $500 billion. Adding to this, because its shareholder returns are favorable compared with the S&P 500 Index, Nadella gained the highest award for the five-year timescale, with 900,000 additional shares. 

In numbers, Microsoft gave Nadella $29.6 million in stock awards over the fiscal year, $10.8 million in cash — all of this, in addition to his base salary.

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The total amassed to $42.9 million

Nadella is not the only Microsoft employee receiving a hefty raise

Amy Hood, Microsoft's chief financial officer, received nearly $20.3 million as compensation during the latest fiscal year. This is an increase of 35%, making Hood the second-highest-paid employee of the company during that year. 

President and chief legal officer, Brad Smith, on the other hand, brought in approximately $17.4 million, a 29% rise from the 2018 fiscal year. 

In broader terms, Nadella's pay raise was 249 times higher than the median Microsoft employee, who averaged around $172,000 in that same period.

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