Microsoft CEO Satya Nadella has seen his compensation package rise by an astounding 63%, reaching a total of $79.1 million. This sharp increase has sparked discussions about executive compensation practices, especially in light of the company’s ongoing challenges.
Majority in Stock and Accountability Adjustments
According to the latest regulatory filings, approximately 90% of Nadella’s pay package consists of Microsoft shares. This hefty compensation reflects the company’s confidence in its leadership despite facing scrutiny over its security practices. Notably, Nadella opted for a $5 million reduction in his pay as a gesture of “personal accountability” following a tumultuous year for Microsoft regarding cybersecurity incidents.
In March, a report from the U.S. government’s Cyber Safety Review Board highlighted deficiencies in Microsoft’s security measures compared to other cloud service providers. The report specifically addressed a breach attributed to a Chinese hacking group, which compromised the email accounts of 25 organizations, including several U.S. government agencies. Nadella’s leadership was further questioned when Microsoft President Brad Smith testified before Congress, acknowledging the company’s shortcomings and pledging to improve their security protocols.
Widespread Layoffs Amid Executive Raises
Despite Nadella’s soaring pay, Microsoft has undergone significant layoffs, shedding over 2,500 jobs in 2023 alone. The company executed two major rounds of layoffs this year, including 1,900 positions at Activision Blizzard and Xbox in January and an additional 650 in recent months. The move comes in the wake of Microsoft’s $69 billion acquisition of Activision Blizzard in October 2023, raising concerns about the integration of their workforce and the company’s overall strategy.
In addition to Nadella, other top executives also enjoyed pay increases. Chief Financial Officer Amy Hood saw her compensation rise by 30% to $25.8 million, while President Brad Smith received a 29% increase to $23.4 million. These raises, juxtaposed with the backdrop of job cuts and security lapses, paint a complicated picture of Microsoft’s current leadership dynamics.
As Microsoft continues to navigate these turbulent waters, the substantial pay increase for Nadella raises questions about accountability and the value placed on executive leadership amidst operational challenges. For more information, visit PC Gamer.