Microsoft CEO Satya Nadella gets Rs 847 crore payday as AI push fuels record profits

Microsoft CEO Satya Nadella will get a big payday as the company is betting big on artificial intelligence.  According to the new proxy filing, Nadella’s total compensation for fiscal 2025 increased 22 per cent to $96.5 million (roughly Rs 847 crore), up from $79.1 million the previous year. This comes amid Microsoft’s strong stock performance, which has increased by 23 percent this year. 

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The majority of Nadella’s earnings came from stock awards, which totalled more than $84 million, while cash incentives accounted for approximately $9.5 million. Nadella’s base salary remained a small portion of the total, making the package primarily performance-based. Microsoft’s market value has nearly doubled over the last three years, thanks to the company’s aggressive push into artificial intelligence through its partnership with OpenAI and rapid expansion of its Azure cloud business. 

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The company’s July earnings report showed 18 per cent year-on-year revenue growth, the fastest in more than three years, easily exceeding Wall Street expectations. With its next quarterly results due next week, investors are keeping a close eye on Azure’s performance, which remains Microsoft’s primary growth engine. 

Nadella’s compensation has increased substantially in recent years, rising by 63 percent in 2024 from $48.5 million to $79.1 million. Long-term stock awards account for more than 90 per cent of his total pay and are directly related to Microsoft’s market success. Following a series of cyberattacks against the company last year, Nadella voluntarily requested that the board reduce his cash bonus from $10.66 million to $5.2 million, a rare gesture among corporate leaders. 

Even after record profits, Microsoft faced internal challenges, including the layoff of over 15,000 employees earlier this year. The company has also faced criticism for firing employees who protested its contracts with the Israeli military, sparking questions about its internal ethics even as it remains one of the major beneficiaries of the AI revolution.

For those who are unaware, Microsoft has grown to a market value of more than $3 trillion under Nadella’s leadership since 2014, placing it among the world’s most valuable companies.  

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Ashish Singh

Ashish Singh is the Chief Copy Editor at Digit. He's been wrangling tech jargon since 2020 (Times Internet, Jagran English '22). When not policing commas, he's likely fueling his gadget habit with coffee, strategising his next virtual race, or plotting a road trip to test the latest in-car tech. He speaks fluent Geek. View Full Profile