Microsoft CEO Satya Nadella’s salary has reached a new record in 2025: $96.5 million. According to collected Bloombergthe Microsoft executive received a 22% salary increase compared to 2024 that reflects the skyrocketing stocks from the $4 trillion tech giant.
Underlying this salary increase lies a debate that has been on the table for some time: the accelerated increase in the wage gap among senior managers of a company and its employees.
Work well done pays off. The last fiscal year has been historic for Microsoft and its CEO, Satya Nadella, who will receive the largest salary package since he took office in 2014. According to what Microsoft made public in a document filed with the US Securities and Exchange Commission (SEC), the total compensation awarded to Nadella amounts to $96.5 million.
This remuneration represents an increase of 22% compared to the previous year, in which a salary of $79.1 million for the CEO.
If Microsoft does well, so does its CEO. As stood out Fortunethis salary increase goes hand in hand with the good stock market performance that Microsoft has had in recent months, and the prominence of artificial intelligence in its products and services
The company’s board of directors indicates that more than 95% of Nadella’s compensation is linked to the performance of his shares, highlighting financial results, the creation of value for shareholders and leadership in AI as key elements to grant that salary increase to the executive.
It’s salary, but not everything is cash. The majority of the compensation Nadella will receive comes from stock awards worth more than $84 million. The bonus that the CEO will receive in cash for different incentives will amount to 9.5 million dollars. For his part, the manager’s base salary It remains at 2.5 million and will obtain $196,000 in other benefits, such as per diems or private jet services.
This implies that about 90% of their remuneration is variable and dependent on stock market performance, which means that it is only a valuation that is made at the time it is assigned, but it is an asset that can increase or lose part of its value. depending on your management. This remuneration strategy linked to shares represents an important incentive for the CEO to continue meeting objectives.
Salary escalation. Since Satya Nadella took over as CEO of Microsoft in 2014, his salary has continued to increase at the same rate as the company’s stock price.
According to the published data by Business Insiderin 2015 Nadella’s total salary was $18 million. By 2022, his compensation had multiplied to $55 million, and increased by 63% in 2024 to $79.1 million. With the 96.5 million, the Steve Ballmer’s successor At the head of Microsoft he has broken his own record.
Salary gap and layoffs. This year of prosperity for the CEO of Microsoft occurs in a context of complex internal adjustments in the company he leads, which has announced layoffs that will affect up to 15,000 employees.
The difference between Nadella’s salary and that of an average Microsoft employee is significant: the CEO earns 480 times more than the average annual salary of his employees, which is around $200,972. This gap between managers and employees does not only occur at Microsoft, but is another example of an upward trend in large technology companies. According to a study that has analyzed the main companies of the S&P 500, in the last five years the salary of managers has been increased by 35%. A much higher percentage than the salary of its employees has increased.
Image | Microsoft
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