Microsoft CEO Satya Nadella Earns Record $96.5 Million as AI Drives Growth

For the fiscal year 2024–2025, Microsoft Corporation Chief Executive Officer Satya Nadella received a pay increase to $96.5 million, the biggest since taking over the position more than ten years ago. According to Bloomberg, the board credited the rise to the business’s advancements in artificial intelligence (AI).

The board’s remuneration committee stated in a message to shareholders contained in a regulatory filing made public on Tuesday that the results “show that Satya Nadella and his leadership team have positioned Microsoft as a clear artificial intelligence leader for this generational technology shift.” The document states that around 90% of Nadella’s compensation, which includes a base salary of $2.5 million, is in Microsoft stock. The prior fiscal year, he made $79.1 million. In 2014, Nadella was appointed as the third CEO of Microsoft.

Microsoft’s Top Brass Also Received Salary Hike

In the year that ended in June, Nadella’s top deputies also saw increases in pay. Amy Hood, the chief financial officer, was paid $29.5 million in total, while Judson Althoff, who was recently promoted to head Microsoft’s commercial division, was paid $28.2 million. Leading Microsoft’s successful transition to cloud computing has been Nadella’s most notable accomplishment.

He supported Azure’s expansion since he saw the potential of cloud services early on, and it currently faces off against Amazon Web Services for market dominance. Microsoft also increased its presence in professional networking and software development through strategic acquisitions like GitHub and LinkedIn. Through significant investments, such as the purchase of Activision Blizzard, Nadella also fortified the company’s gaming portfolio, solidifying Microsoft’s position in the quickly expanding gaming industry.

Nadella’s Current Focus on AI

Microsoft invested $1 billion in OpenAI, a little-known AI start-up at the time, under Nadella’s direction. OpenAI is now the most well-known brand in AI because of ChatGPT. Microsoft invested an additional $10 billion to strengthen the alliance, and since then, it has integrated AI into almost all of its services and products.

Nadella, who was reared in Hyderabad, graduated from Mangalore University in 1988 with a degree in electrical engineering. He joined Sun Microsystems’ technology team after relocating to the United States and earning a master’s degree in computer science from the University of Wisconsin–Milwaukee in 1990. After being hired by Microsoft in 1992, he first helped create Windows NT, an operating system designed for business users. Nadella went on to become executive vice president in charge of Microsoft’s cloud computing operations after serving as president of the company’s server and tools division.

Quick Shots

•Microsoft
CEO Satya Nadella earned $96.5 million in FY 2024–25, up from $79.1 million
last year.

•Compensation
hike credited to Microsoft’s advancements in artificial intelligence,
including ChatGPT integration.

•Around
90% of Nadella’s pay comes from Microsoft stock; base salary is $2.5 million.

Microsoft invested $11B in OpenAI;
AI integrated across products and services.

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