Satya Nadella’s compensation plummets in 2023: Here’s what’s happening inside Microsoft

Priya Walia

Satya Nadella, the renowned CEO of Microsoft, saw a decrease in his total compensation for 2023, earning $48.5 million. This marks a notable decline from the $54.94 million and $49.85 million he received in the preceding years.

The details of Nadella’s 2023 compensation package, reported by The Register, revealed that his salary remained unchanged at $2.5 million, while his stock awards, non-equity incentives, and other compensations amounted to $39.23 million, $6.4 million, and $360,000, respectively.

The dip in Nadella’s pay follows the decision earlier this year to freeze the salaries of full-time salaried staff due to a slowdown in revenue growth. Despite falling slightly short of his financial result targets, Nadella managed to exceed the operational goals, achieving 85.5 percent of the set objectives, as per The Register.

Notably, a substantial portion of the CEO’s annual compensation is tied to the company’s performance, with over 95 percent being performance-based and 70 percent of the cash incentive linked to pre-established financial metrics.

The comparison of Nadella’s compensation to that of the median employee at Microsoft highlights a significant CEO-to-worker pay gap. According to the company’s proxy statement for 2023, the annual total compensation for the median employee was $193,770, emphasizing the substantial disparity between the CEO’s pay and the rest of the workforce.

The report by The Register also sheds light on the compensation packages of other key executives within Nadella’s leadership team. The Chief Financial Officer, Amy Hood, received $19.9 million, while top sales officer Judson Althoff, President Brad Smith, and Executive Vice President Christopher Young were compensated $16.2 million, $18.1 million, and $9.8 million, respectively.

Recently, we’ve also covered an interesting story about the salary packages Microsoft offers its new hires, so please don’t forget to go through that and leave us with your views in the comments section below.