Microsoft CEO Satya Nadella's Compensation Decreases to $90.6 Million Amid Stock Decline

Microsoft CEO Satya Nadella's compensation for the past fiscal year totaled $90.6 million, a decrease of $6 million from the previous year, according to a regulatory filing. This reduction is attributed to a decline in Microsoft's stock performance during the fiscal year ending June 30.

Despite the decrease, Nadella's earnings remain higher than the $79.1 million he received in 2024. His annual base salary has been stable at $2.5 million since he assumed the CEO role in 2014. The majority of his compensation comes from stock awards, which amounted to $77.5 million last year, and a cash bonus of $10.3 million. The bonus is determined by factors such as company culture, cybersecurity metrics, and product performance. Additional compensation, including charitable gifts, pension contributions, and security services, totaled $259,204.

In parallel with Nadella's compensation adjustment, Microsoft has offered voluntary buyouts to approximately 60,000 employees, representing over a quarter of its global workforce. This initiative aims to control costs and support investments in artificial intelligence. Eligible employees in roles within finance, human resources, Copilot, AI experiences, Xbox, and Windows + Devices are being offered the package, while those in marketing, security, and commercial business are excluded.

According to a memo from Chief People Officer Amy Coleman, the offer provides a new option for employees considering a transition out of the company, with support. It also allows organizations to adapt their workforce to evolving needs. The buyouts are available to employees at the vice president level and below in the U.S., Canada, India, and the U.K., with offers needing a decision by December. Microsoft anticipates an acceptance rate of 3% to 5%, equating to fewer than 3,000 employees.

Microsoft, which has 223,000 full-time employees globally as of June 30, has previously implemented workforce adjustments. Earlier this year, the company offered buyouts to about 7% of its U.S. workforce, and in July, announced plans to cut 4,800 jobs worldwide. These moves occur as Microsoft integrates AI more deeply into its product offerings, including its Copilot assistant and AI-powered personal computers, and supplies cloud computing power to major AI developers like OpenAI and Anthropic.

The median employee compensation at Microsoft, excluding Nadella, increased from over $200,000 to more than $215,000 in the past year.