Microsoft’s chief executive, Satya Nadella, saw a significant increase in his earnings last year, despite facing cybersecurity challenges within the tech giant. Nadella earned a staggering $79.1 million, a 63% rise from the previous year.
Interestingly, Nadella had requested a reduction in one element of his pay package due to cybersecurity flaws at Microsoft, resulting in him receiving $5 million less than he would have otherwise. This decision came after a cyber attack in July 2023, where hackers gained access to the email accounts of numerous organizations, including government agencies.
Despite the cybersecurity issues, Microsoft’s revenue grew by 16% in the fiscal year ending on June 30, 2024. The company’s compensation committee acknowledged Nadella’s request to reduce his cash incentive to reflect his personal accountability for the cyber attacks.
While Nadella’s total pay amounted to $79.1 million, the bulk of it, $71.2 million, came from stock options. The compensation committee reduced his cash pay to $5.2 million, less than 7% of his total earnings.
Critics, such as High Pay Centre director Luke Hildyard, questioned the necessity of such high earnings for executives like Nadella, especially considering Microsoft’s success is attributed to its workers, customers, and society as a whole. Hildyard suggested a more equitable distribution of the company’s success.
Comparing Nadella’s earnings to other tech executives, Apple’s Tim Cook earned $63.2 million in 2023, Nvidia’s Jensen Huang received $34.2 million in the 2024 fiscal year, and Tesla’s Elon Musk’s pay packet could potentially reach $56 billion. Despite the varying compensation levels, Nadella’s substantial increase in earnings has sparked discussions about executive pay and corporate responsibility in the tech industry.
