Microsoft CEO Pay Raise and Company Restructuring

Microsoft's CEO, Satya Nadella, received a significant pay raise in 2020, with his total compensation increasing by 46% to $42.9 million. This raise was largely driven by the company's strong financial performance, which saw revenue growth of 13%.

Microsoft's strong financials were fueled by the success of its cloud computing business, Azure, which saw a 50% increase in revenue. This growth was a key factor in the company's decision to restructure and refocus its efforts on cloud-based services.

The pay raise for Nadella was also influenced by the company's stock performance, with Microsoft's stock price increasing by 55% in 2020. This increase in stock value added millions to Nadella's compensation package.

Take a look at this: Microsoft Current Ratio

Satya Nadella, Microsoft's 55-year-old CEO and chairman, received a total pay package of $54.9 million for the fiscal year.

He collected a base pay of $2.5 million, unchanged for at least three years now.

Nadella's stock awards valued at $42.3 million, about 28 percent higher than the prior year, significantly contributed to his pay increase.

His $10.1 million in non-equity incentive plan compensation was about 29 percent lower year over year.

Satya Nadella received a total pay package of $54.9 million for the fiscal year.

His base pay remained unchanged at $2.5 million, which is a consistent figure for at least three years now.

Nadella collected stock awards valued at $42.3 million, a 28 percent increase from the prior year.

His non-equity incentive plan compensation was $10.1 million, which is 29 percent lower than the previous year.

He also received $110,250 in "other compensation", which includes retirement plan contributions, 401(k) plan matching, charitable gifts, and matching charitable contributions.

Nadella's pay compared to the annual total compensation of the median Microsoft employee was 289-to-one.

Brad Smith, Microsoft's vice chairman and president, saw a significant pay package increase to $23.4 million, a 14 percent jump year over year.

His base pay of $993,333 was about 5 percent, or $50,000 more, than in 2021. He received $18.8 million in stock awards, a 24 percent increase year over year. His non-equity incentive plan compensation was $3.6 million, about 17 percent less than the prior year.

Smith's other compensation included $10,250 in retirement plan contributions and 401(k) plan matching, plus $100,000 in charitable gifts and matching charitable contributions. He received $110,277 in total other compensation, in line with what he received the year prior.

Brad Smith's accomplishments for the year were notable, with the launch of a new initiative to combat disinformation and foreign cyber influence operations. He also led the response to the war in Ukraine to defend against cybersecurity attacks.

Smith supported important customer privacy protections in the new Trans-Atlantic Data Privacy Framework and enhanced how Microsoft handles legal requests for customer data. He provided more support for individuals concerned about their rights.

His work in delivering more cybersecurity education and training resulted in reaching over 30 million people in 249 countries and territories. This included training 5.8 million people for jobs and livelihood opportunities in the digital economy.

Smith released the Responsible AI Standard, a set of company-wide rules to ensure AI technology development and deployment align with Microsoft's AI principles. He also joined the Carbon Call to lead efforts on developing reliable carbon accounting methodology standards.

Satya Nadella, the CEO, received a 66% pay raise in the 2020 fiscal year. His total compensation was $43.3 million.

Other executives, like Amy Hood, CFO, and Phil Spencer, Head of Gaming, also received significant pay increases.

Microsoft has been in the news for laying off thousands of employees, including 1,900 from its gaming workforce after the company's acquisition of Activision Blizzard. This move was part of a larger restructuring effort.

The layoffs were not limited to the gaming department, as Microsoft also shut down Arkane Austin, a gamer firm, and handed out pink slips to 650 employees. This resulted in a total of nearly 2,500 workers being let go.

The layoffs were a significant move by Microsoft, which has been expanding its reach through acquisitions. Despite the job cuts, Microsoft's CEO Satya Nadella received a $30 million pay raise.

Amy Hood, the Executive Vice President and Chief Financial Officer of Microsoft, received a total compensation of $26.3 million for the fiscal year. This is a 12 percent increase from the prior year.

Her base salary was $1 million, a $4,000 increase from the previous year. Hood's stock awards were valued at $21.7 million, a 20 percent increase over the prior year.

Hood received $3.6 million in non-equity incentive plan compensation, a 21 percent decrease from the previous year. She also received $62,400 in other compensation, which included $10,250 in retirement plan contributions and 401(k) plan matching.

Her compensation package included $50,000 in charitable gifts and matching charitable contributions. Hood's accomplishments were recognized by the compensation committee, which credited her with strong financial performance and management, including double-digit revenue growth of 18% and operating income growth of 19%.