Microsoft CEO Satya Nadella pocketed a staggering $96.5 million in compensation for fiscal year 2025, a 22% increase from his $79.1 million haul in 2024, according to the company’s latest disclosures. The eye-watering package—comprising $84 million in stock awards, $9.5 million in cash incentives, and a $2.5 million base salary—reflects Microsoft’s soaring stock performance, with 90% of Nadella’s earnings tied directly to share value. This marks a continuation of his meteoric pay rise, which saw a 63% jump in 2024 from $48.5 million in 2023, driven largely by $71 million in stock awards as Microsoft’s market capitalization breached $3 trillion.

Since assuming the CEO role in 2014, Nadella has transformed Microsoft into a powerhouse of cloud computing and artificial intelligence. Strategic acquisitions like LinkedIn, GitHub, and Activision Blizzard, alongside a pivotal partnership with OpenAI, have embedded generative AI across Microsoft’s product suite, from Azure to Office. These moves have fueled a 23% stock surge in 2025 alone, with shares more than doubling over the past three years.

The company’s recent quarterly report showcased an 18% sales increase—the fastest growth in over three years—propelled by robust demand for Azure’s cloud services and AI infrastructure. Microsoft is poised to release its fiscal first-quarter results next week, with analysts anticipating continued strength.

However, Nadella’s windfall comes amid controversy. Microsoft laid off over 15,000 employees in 2025, including staff protesting the company’s contracts with Israel, stirring unrest within its workforce. In a July memo, Nadella admitted the cuts weighed heavily on him, yet the company’s executive pay remains untouched. Chief Financial Officer Amy Hood earned $29.5 million, while Judson Althoff, newly appointed head of commercial business, received $28.2 million, reflecting significant raises for top leadership.

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The disparity between executive compensation and employee layoffs has sparked criticism, with stakeholders questioning the optics of Nadella’s near-$100 million package. As Microsoft continues to lead in AI and cloud innovation, the tension between its financial triumphs and workforce challenges raises pressing questions about corporate priorities in an era of technological dominance.

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