Satya Nadella’s compensation surges to USD 96.5 mn in FY 2024–2025, amid Microsoft’s AI push
The figure was disclosed in a regulatory filing released on October 21, in which Microsoft stated that Nadella and his leadership team had successfully positioned the company as a global leader in artificial intelligence (AI), a technology it described as part of a “generational shift.”
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Microsoft Corporation CEO Satya Nadella received a total compensation package of $96.5 million for the financial year 2024–2025, marking his highest annual pay since taking the helm more than a decade ago, according to media reports.
The figure was disclosed in a regulatory filing released on October 21, in which Microsoft stated that Nadella and his leadership team had successfully positioned the company as a global leader in artificial intelligence (AI), a technology it described as part of a “generational shift.”
According to the filing, approximately 90 percent of Nadella’s compensation—which includes a USD 2.5 million base salary—was awarded in Microsoft stock. This is a significant increase from the $79.1 million he earned in the previous fiscal year. Nadella, who became Microsoft's third CEO in 2014, has overseen a period of substantial transformation and growth for the company, particularly in cloud computing and AI.
The compensation of Nadella’s top deputies also saw notable increases during the year ending in June. Microsoft’s Chief Financial Officer Amy Hood received a total package worth $29.5 million, while Judson Althoff, recently promoted to lead Microsoft’s commercial business, earned $28.2 million, the filing revealed.
However, the executive pay hikes come against a backdrop of growing internal unrest. In September, reports surfaced that employee morale had dipped, following another round of layoffs at Microsoft—the latest in a year marked by workforce reductions. The company has been automating roles and restructuring teams in response to the rapid adoption of advanced AI technologies.
According to The Verge, many employees now work under the constant threat of redundancy, fearing that Microsoft’s increasing reliance on AI may lead to further job losses. The layoffs are part of a broader shift as the company reallocates resources toward AI development.
Facing mounting pressure to stay ahead in the AI race, where competitors such as OpenAI, Meta, and Google are making swift progress, Microsoft is doubling down on AI investment. In addition to internal restructuring, it is also aggressively hiring AI talent from rivals and is reportedly prepared to make significant financial commitments to secure top minds in the field.
With its future increasingly tied to the success of AI, Microsoft’s compensation strategy appears to reflect its desire to retain top leadership as it navigates one of the most transformative periods in its history.
