Microsoft CEO's compensation jumps 63% to $79.1M, showcasing ambition in AI

Microsoft Corp. CEO Satya Nadella's compensation rose 63% to $79.1 million in fiscal 2024, reflecting the company's ambitions in artificial intelligence tools, according to regulatory filings the company submitted Thursday.

About 90% of Nadella's compensation was in Microsoft stock, the largest amount he has received in any year since becoming Microsoft's third CEO in 2014, according to the filings. However, his compensation could have been about $5 million higher if he hadn't asked for a pay cut to reflect his personal responsibility for the company's response to cybersecurity risks, which have been under scrutiny from the U.S. Cybersecurity Review Board and others after a series of hacker attacks over software security issues.

The company's board compensation committee highlighted in the filings that despite the challenges, it still believed Nadella provided outstanding leadership and was key to the company's strong performance, and personally oversaw the ongoing adjustments to the company's investments and priorities.

Chief Financial Officer Amy Hood's annual compensation rose 30% to $25.8 million, and President Brad Smith's compensation also rose 29% to $23.4 million, reflecting the contributions of the company's senior management team in driving its strategy and performance.