Microsoft CEO, Satya Nadella, experienced a decrease in his overall compensation, amounting to $48.5 million in 2023. This figure is significantly lower than in the last three years, due to a reduction in stock awards and other incentives given. Even so, with that kind of money, Nadella won't be looking down the back of the sofa for spare change.
CEO's Earnings in Perspective
Nadella's income in 2023 is less compared to the $54.94 million he received in the previous fiscal year and the $49.85 million he garnered the year before that. The recent fiscal year saw Nadella earning $2.5 million in salary, a figure that did not increase from the previous years. He also received $39.23 million in stock, $6.4 million in non-equity incentives, and an additional $360k in other compensations.
This decline in income comes despite Microsoft witnessing an 11 percent increase in revenue, amounting to $211.9 billion. Their operating income also slightly increased to $88.5 billion from a previous $83.38 billion, while the net income remained flat at $72.36 billion. Despite the pandemic slowdown, Microsoft's cloud revenue expanded by 22 percent, bringing the total to a staggering $111.6 billion.
Subheading: Comparisons with Other Microsoft Executives and Employees
While Nadella saw a decline in his earnings, other executives in Microsoft continued to see significant figures in their compensation. CFO Amy Hood received $19.9 million, Judson Althoff of the sales office received $16.2 million, President Brad Smith took home $18.1 million, and Christopher Young, Executive VP for business development, strategy, and ventures, received $9.8 million.
Microsoft's employees were informed by Nadella that their salaries would be frozen due to a slowdown in revenue growth, a decision taken just months before his own income cut. The CEO to employee pay ratio dropped from 289 to 1 the previous year, down to 250 to 1 in the current fiscal year.