Satya Nadella, the CEO of Microsoft, has made headlines recently with a substantial salary hike of 63% for the fiscal year 2024. With a net worth estimated at Rs 7,500 crore, Nadella continues solidifying his position as one of the most influential leaders in the tech industry. This article explores the details of his compensation, the factors influencing it, and how it compares to other prominent Indian-origin CEOs.
A Significant Paycheck
A recent filing with the US Securities and Exchange Commission revealed that Nadella’s total compensation for FY2024 amounted to approximately $79.1 million (around Rs 665 crore). This increase marks a notable leap from his previous year’s earnings and ranks as the second-highest annual compensation he has received since taking the helm at Microsoft in 2014.
Breakdown of Earnings
Nadella’s compensation is largely tied to Microsoft’s stock performance. The breakdown of his earnings for FY2024 is as follows:
- Stock Awards: $71,236,392 (approximately Rs 600 crore)
- Non-Equity Incentive Plan: $5.2 million (around Rs 44 crore)
- Base Salary: $2.5 million (over Rs 21 crore)
- Miscellaneous Compensation: $169,791 (around Rs 15 lakh)
This structure illustrates how performance-based incentives significantly contribute to his overall earnings, reflecting Microsoft’s strong market position and financial performance.
Reasons Behind the Salary Hike
Despite the impressive salary increase, it’s noteworthy that Nadella had previously requested a pay cut this year. Following several cybersecurity issues, including a notable incident in July that affected many Windows users, he opted to reduce his bonus from an originally planned $10.66 million (approximately Rs 89 crore) to $5.2 million (around Rs 43 crore). This decision underscores his commitment to accountability and leadership integrity during challenging times.
Microsoft’s Financial Growth
Since Nadella was appointed CEO, Microsoft has experienced remarkable growth. The company’s revenue has nearly tripled, reaching $245.1 billion (approximately Rs 2,060 crore), while net income has almost quadrupled to $88.1 billion (around Rs 740 crore). Additionally, diluted earnings per share have surged to $11.80 (approximately Rs 99 crore). This impressive financial performance provides context for Nadella’s compensation, as it reflects the overall success and growth of the company under his leadership.
Comparison with Other Indian-Origin CEOs
Nadella’s salary places him among the highest-paid Indian-origin CEOs globally. Sundar Pichai of Google currently leads this category with an annual compensation of around Rs 1,846 crore. Following Nadella, other notable figures include:
- Shantanu Narayen (Adobe): Rs 300 crore
- Sanjay Mehrotra (Micron Technology): Rs 206 crore
- Arvind Krishna (IBM): Rs 165 crore
This competitive landscape highlights the significant financial rewards available to leaders in the tech industry, particularly for those steering major corporations like Microsoft and Google.
