Microsoft’s CEO, Satya Nadella, is getting a massive 22% pay raise, bringing his total compensation for the year to an incredible $96.5 million. The huge pay package, which includes a $2.5 million salary and $84 million in stock awards, comes at the same time the company has been cutting thousands of jobs.
The company’s board justified the raise by citing Microsoft’s remarkable financial performance under Nadella’s leadership. Since he took over in 2014, the company’s revenue has tripled and its profits have quadrupled. This past year was no exception, with Microsoft bringing in over $281 billion in revenue, largely thanks to the booming growth of its cloud and AI businesses.
Microsoft says that most of Nadella’s pay is tied to the company’s long-term performance, a structure designed to “encourage his continued leadership.” But the announcement’s timing is awkward. Just a few months ago, Microsoft laid off up to 9,000 employees.
The company even disclosed that Nadella’s pay is now 480 times the median annual salary of a Microsoft employee. This stark contrast between the CEO’s soaring pay and the company’s internal cost-cutting is raising some tough questions.
While Microsoft continues to pour billions into its AI future, this new pay package is sure to fuel the debate over whether the company’s AI-driven success is truly benefiting everyone, or just the person at the very top.
