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Microsoft CEO Gets Pay Rise to $79M While Pushing AI Boundaries

Microsoft’s Satya Nadella saw a pay increase to $79 million in 2024, as he tied his bonus to cybersecurity measures and led AI initiatives with Copilot+ and OpenAI

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Microsoft CEO Satya Nadella earned $79.1 million in 2024, a significant boost from $48.5 million last year, despite his own request to reduce his cash bonus following recent cybersecurity challenges. The decision, revealed in Microsoft’s proxy statement on October 25, reflects Nadella’s leadership approach, as he proactively linked his bonus to Microsoft’s cybersecurity commitments amid high-profile breaches, primarily driven by the company’s reliance on stock performance.

Microsoft’s proxy statement discloses that Nadella asked them to adjust his cash incentive downward after vulnerabilities in the company’s infrastructure allowed Chinese operatives to gain access to U.S. officials’ emails.

The request, reportedly made to emphasize “personal responsibility” over cybersecurity, resulted in a cash incentive of $5.2 million, more than 50% less than what he would have otherwise received. Nadella’s pay package, however, remains bolstered by Microsoft’s positive stock performance, particularly in light of Microsoft’s growing presence in AI.

AI Expansion Through Copilot+ Line and Qualcomm Partnership

Under Nadella’s leadership, Microsoft launched its AI-enhanced Copilot+ product line in 2024, built to enhance on-device processing by incorporating Qualcomm’s Arm-based Snapdragon X Elite processors, which include specialized neural processing units (NPUs). Designed to reduce reliance on cloud-based computing, NPUs enable tasks like language translation and image processing directly on the device.

However, this architectural shift from Intel’s x86 to Arm chips has led to compatibility issues, particularly affecting game performance on Copilot+ PCs, which aren’t optimized for graphics-intensive games popular on Intel’s x86 platforms. Microsoft is addressing these issues by employing software translation layers, though some titles still experience bugs or fail to run due to anti-cheat software limitations.

Despite these gaming challenges, Copilot+ devices benefit from extended battery life and faster processing speeds, catering to professional users focused on productivity. Intel’s upcoming Core Ultra 200V and AMD’s Ryzen AI 300 processors, expected to support Copilot+ in November, promise to expand these features across more devices and improve compatibility for users.

Microsoft’s Multi-Billion Dollar AI Investments and Strategic Vision

Nadella’s proactive approach to integrating AI across Microsoft’s ecosystem extends beyond Copilot+. Internal emails from 2019, recently disclosed during the Google antitrust trial, showed Microsoft’s realization that it had fallen behind Google and OpenAI in machine learning and natural language processing (NLP).

This awareness led to Microsoft’s billion-dollar investment in OpenAI, with further investments bringing Microsoft’s financial stake to $13 billion and establishing the company on OpenAI’s board. Today, Microsoft embeds OpenAI’s technology in its productivity and cloud tools, illustrating Nadella’s strategic aim to enhance enterprise AI capabilities.

Nadella’s Annual Address

As we navigate the rapidly evolving landscape of artificial intelligence in 2024, discussions and advancements in AI are ubiquitous. From casual conversations to high-level corporate strategies, AI has permeated the technological discourse.

Microsoft CEO Satya Nadella’s annual shareholder address, delivered via LinkedIn, underscores this trend. In his letter, Nadella emphasized AI 152 times, highlighting its strategic importance to the company. While Microsoft’s Copilot platform has recently undergone a relaunch, its consumer adoption lags behind OpenAI’s ChatGPT.

The disparity may be exacerbated by the evolving relationship between Microsoft and OpenAI, the provider of the underlying models for Copilot. However, Nadella says Microsoft has demonstrated significant strides in the realm of business-grade AI. Deep integrations of AI into Azure, GitHub, Visual Studio, Microsoft 365, and other tools have positioned the company as a leader in enterprise AI solutions.

“Microsoft has built three leading platforms to help our customers maximize their opportunity in this emerging agentic era,” Nadella said. “Copilot, which you can think of as the new UI for AI—the human interface for this agentic world; the Copilot stack, which brings together infrastructure, data, and app services to help customers build their own copilots and agents for their own business processes; and a new category of Copilot devices that are purpose-built for this new era, including the Copilot+ PCs we introduced this year.”

Nadella acknowledged its significant progress over the past year but stressed the importance of continued innovation and ethical responsibility. He emphasized that its “permission to innovate and operate” is not a given but must be earned through consistent efforts.

The CEO reiterated its commitment to the well-being of the world, stating that the company’s success is intrinsically linked to the prosperity of society. To uphold this commitment, Microsoft outlined four enduring principles:

  • Ethical AI: Ensuring that AI is developed and used responsibly.
  • Digital Inclusion: Making technology accessible to all.
  • Cybersecurity: Protecting individuals and organizations from cyber threats.
  • Sustainability: Minimizing the environmental impact of technology.

Last Updated on November 7, 2024 2:20 pm CET

Luke Jones
Luke Jones
Luke has been writing about Microsoft and the wider tech industry for over 10 years. With a degree in creative and professional writing, Luke looks for the interesting spin when covering AI, Windows, Xbox, and more.

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