In a recently released report, it was revealed that Satya Nadella, the CEO and Executive Chairman of Microsoft, received a total compensation of $48.5 million for the fiscal year ending on June 30, 2023. This amount represents a notable 12% decrease from the previous year's compensation.
The substantial portion of Nadella's compensation, about $39.2 million, came in the form of stock awards. However, this value is approximately 7% lower compared to the previous year. For the year 2023, Nadella received a bonus of about $6.4 million, marking a decrease of about 36% year over year.
In addition to his stock awards and bonus, Nadella received his standard $2.5 million base salary and approximately $362,000 in other compensation. This other compensation encompasses various components, including $11,250 in 401(k) plan matching and other retirement plan contributions, $100,000 in charitable contributions, and $250,400 allocated for a one-time vacation accrual.
It's worth noting that Nadella's compensation was 250 times that of the median Microsoft employee, according to the regulatory filings.
The filings provide a detailed list of reasons justifying Nadella's eligibility for a portion of his target bonus. These reasons include his visionary leadership, decisive decision-making, and strategic excellence, which positioned Microsoft as a leader in the field of AI. Notable achievements mentioned in the report include advancements in AI infrastructure, early AI market success, and the introduction of innovative products like Microsoft 365 Copilot, Azure OpenAI Service, and the new Bing and Edge.
Additionally, the report highlighted Nadella's contributions to critical security leadership, increased customer adoption of Microsoft security services, and a commitment to responsible AI governance. Furthermore, his leadership facilitated a 7% year-over-year growth in total revenue, with a significant share of this growth attributed to new investments and innovation.
Nadella's role in establishing Microsoft as the preferred cloud partner for premier global organizations, including Digital Natives, was also underscored. The report praised his efforts in navigating new cybersecurity regulations, providing robust cybersecurity support for Ukraine and NATO, and expanding Microsoft's influence in foreign cyber operations.
Furthermore, Nadella's leadership extended to sustainability initiatives within Microsoft's own properties, focusing on waste reduction, reuse, and recovery in campuses and data centers. In a year marked by workforce reductions, Nadella's leadership was commended for fostering a culture of dignity and respect for impacted employees throughout the process.
This report offers insights into the complexities of executive compensation, taking into account factors such as stock performance, bonuses, and leadership contributions to a global technology giant.