Microsoft CEO Satya Nadella has received a staggering 63% increase in his pay package, bringing his total compensation to $79.1 million for the fiscal year ending in June. This significant rise comes despite a turbulent year for the company marked by layoffs and multiple cybersecurity incidents.
Share-Based Compensation Dominates Package
According to recent regulatory filings, nearly 90% of Nadella’s compensation was awarded in Microsoft shares. While this hefty package could have been even larger—by $5 million—Nadella opted for a personal pay cut to reflect accountability for the company’s cybersecurity challenges. His decision follows a March report from the U.S. government’s Cyber Safety Review Board, which criticized Microsoft’s security practices, deeming them “lacking” compared to other cloud providers.
The board’s report focused on a security breach involving a Chinese hacking group, which compromised the email accounts of 25 organizations, including various government agencies. In response, Microsoft President Brad Smith publicly acknowledged these failures before Congress, expressing the company’s commitment to improvement.
Cybersecurity Overhaul in Progress
Following these breaches, Microsoft has committed to revamping its cybersecurity strategy, introducing six key “security pillars” designed to enhance its defenses. However, these security issues have coincided with significant layoffs at the company, including 1,900 jobs cut at Activision Blizzard and Xbox in January and another 650 last month. Since acquiring Activision Blizzard for $69 billion in October 2023, Microsoft has let go of over 2,500 employees from the gaming division and closed four studios, intensifying concerns among its workforce.
Broader Salary Increases for Microsoft Executives
Nadella’s pay hike is not an isolated event; other top executives also saw their compensation rise this year. Chief Financial Officer Amy Hood’s package increased by 30% to $25.8 million, while President Brad Smith enjoyed a 29% increase, bringing his total to $23.4 million.
As Microsoft navigates through these challenges, the stark contrast between executive pay and employee layoffs raises questions about corporate priorities and accountability. For more details on this development, visit PC Gamer.
