Microsoft’s chief govt Satya Nadella earned $79.1m (£61m) final 12 months, an increase of 63% in comparison with his compensation the 12 months earlier than.
That was regardless of a request from Mr Nadella to scale back one ingredient of his pay bundle due to cybersecurity flaws on the tech big – which resulted in him getting $5m lower than he in any other case would have.
In widespread with many tech corporations, Microsoft has reduce 1000’s of jobs this 12 months, together with many in its gaming division.
However in a proxy assertion filed with the US monetary regulator, the board mentioned the corporate’s income grew by 16% within the 12 months to 30 June 2024.
“Mr. Nadella agreed that the Firm’s efficiency was extraordinarily sturdy,” Microsoft’s compensation committee wrote in a letter to shareholders.
It added he requested them “to think about departing from the established efficiency metrics and cut back his money incentive to mirror his private accountability” over various cyber assaults.
One such assault was reported in July 2023 by Microsoft, the place hackers gained entry to the e-mail accounts of round 25 organisations, together with authorities businesses.
Microsoft mentioned the assault originated in China, although the Chinese language embassy in London referred to as this “disinformation”.
The fiscal interval runs as much as 30 June 2024 – simply weeks earlier than the huge web outage which affected Microsoft Home windows PCs, inflicting chaos all over the world.
Whereas that was not a cyber assault, later in July Microsoft apologised for one other outage which was brought on by a cyber assault.
The compensation committee mentioned it lowered Mr Nadella’s money pay by greater than half, to $5.2m.
That represents lower than 7% of his complete pay.
The majority of his pay, $71.2m, was made up of inventory choices.
Excessive Pay Centre director Luke Hildyard mentioned “superficially” the earnings made sense given Microsoft’s sturdy monetary efficiency.
“Nonetheless, we would additionally ask whether or not the additional $79 million on prime of $49 million final 12 months for somebody who’s already value a whole bunch of hundreds of thousands, with extra money than they may spent over a number of lifetimes of absolute luxurious, is absolutely crucial as a reward of incentive,” he instructed the BBC.
“None of Microsoft’s success can be potential with out employees, clients and wider society so maybe the proceeds of that success ought to be share a bit extra evenly,” he added.
Elsewhere in large tech, Apple boss Tim Prepare dinner earned $63.2m in 2023, whereas the chief govt of the world’s most dear firm Nvidia, Jensen Huang, was paid $34.2m within the 2024 fiscal 12 months.
However none of them come near Tesla boss Elon Musk, whose pay packet could possibly be value as much as $56bn.
