Microsoft looks back on a difficult year filled with many layoffs. CEO Satya Nadella can nonetheless rejoice in a financial windfall that is significantly more generous than the previous year.
What is known about the CEO’s salary? As cnbc.com reports, Microsoft CEO Satya Nadella is likely to enjoy a princely annual salary that is much larger than the previous year.
According to Microsoft’s statements in a document for the U.S. Securities and Exchange Commission (on sec.gov), Nadella’s total compensation for the fiscal year 2025 is expected to be $96.5 million. By comparison: in 2024 it was still $79.1 million, and in 2023 it was $48.5 million. Oh, if only the earnings of all workers could almost double in 2 years…
Rising Stocks = More Millions for the Boss
What comprises the CEO’s salary? The sum apparently consists of over $84 million in stock awards and over $9.5 million in cash incentives. Since compensation is largely tied to the value of Microsoft stock, Nadella benefits significantly from the current AI boom.
This year, Microsoft’s Azure division is delivering strong results, as the demand from companies for cloud infrastructure is increasing to meet the rising AI demand. This is reflected in the stock price, which rose by 23 percent in 2025… hence, the CEO’s salary increase is explained.
Why does the salary have an aftertaste? Although Microsoft can celebrate significant successes this year, not everything is going smoothly for the tech giant. Over 15,000 positions have been cut across several areas. A greater focus on AI is intended to make the leaner teams more productive (source: financialexpress.com).
This summer alone, 9,100 Microsoft employees had to leave, including many from the gaming division. It was the fourth major layoff round at Xbox within 18 months. More details can be found in the following article: Microsoft lays off 9,000 employees to position gaming for long-term success
