Winning Bizness Desk
Mumbai. In a notable increase, Microsoft has raised CEO Satya Nadella’s compensation by 63% for the financial year 2024, bringing his total salary to $79.1 million (approximately ₹665 crore). This increase is primarily attributed to a rise in Nadella’s stock-based income, which reflects Microsoft’s impressive market performance over the past year, driven largely by investments in artificial intelligence and growth in OpenAI technology. For the fiscal year 2023, Nadella’s total compensation was $48.5 million (around ₹408 crore). With this recent boost, Nadella’s 2024 salary represents the second-highest earnings he has received during his tenure at Microsoft, surpassed only by his 2014 earnings package of $84 million. The company disclosed the updated compensation package in its recent stock filings.
AI and Market Expansion Boost Stock Awards
Nadella’s increase in stock-based income follows a surge in Microsoft’s market valuation, which has risen by 31.2% over the past year to exceed $3 trillion (₹252 lakh crore). As a result, Nadella’s stock-based earnings alone have increased from $39 million (₹328 crore) in 2023 to $71 million (₹597 crore) this year. The compensation adjustment reflects Microsoft’s position as a key player in AI and cloud technology, with the company’s investments in OpenAI positioning it as a leader in the fast-evolving AI landscape. Microsoft’s continued expansion and innovation in AI have not only strengthened its market value but have also been central to the company’s strategic growth under Nadella’s leadership.
Comparison with Other Leading CEOs
Among tech CEOs, Nadella’s 2024 earnings place him near the top in terms of compensation. Apple CEO Tim Cook earned $63.2 million in 2023, while Jensen Huang, CEO of Nvidia, received $31.2 million in fiscal 2024. These figures highlight Nadella’s significant role and the emphasis Microsoft places on executive leadership as the company navigates rapid growth and evolving tech markets.
Satya Nadella: A Decade of Leadership
Hyderabad-born Nadella joined Microsoft in 1992 and rose to CEO in 2014. His leadership has been instrumental in transforming Microsoft’s cloud services, AI capabilities, and overall market presence. In 2021, he was appointed Chairman in addition to his role as CEO. Nadella’s accomplishments earned him India’s Padma Bhushan in 2022, recognizing his impact on global technology and his service contributions. This latest salary adjustment underscores the company’s confidence in Nadella’s leadership as Microsoft solidifies its stance in the tech industry’s AI-driven future.
