Microsoft CEO Satya Nadella is walking away with a heavy pocket as he made a whopping $20 million in cash and stock in the company’s current financial year. Details of Nadella’s earning came out in Microsoft’s annual performance report.
During the company’s annual shareholder proxy filing, the package of Satya Nadella was disclosed. Details of the proxy filing can be read here.
The pay structure for Nadella is designed in such a way that more than 50 percent of his package is based on his performance in three major areas: “product and strategy,” “customers and stakeholders,” and “culture and organizational leadership.” Since he scored well in the three areas, he raked in a net bonus of $7,032,406, over and above his base salary of $ 1,450,000.
According to Microsoft’s board, he scored the highest in culture. The board further praised Nadella’s growth mindset approach, where Nadella challenges executives and employees to validate their assumptions and change strategies based on the influx of new data. According to statistics revealed by the board at Microsoft, Nadella scored around 145 percent in this area.
In the proxy statement, Microsoft’s board revealed that the company has adopted these leadership principles across the board so that the leadership team can be clear, energetic and success-driven.
He scored around 125 percent in the category “customers and stakeholders.” The board praised the company’s progress as an innovator and a global leader. This also highlighted Microsoft’s initiative to bring in broadband internet to rural areas.
And finally, in the category of “product and strategy,” Nadella scored 100 percent. The board was pleased with the speed with which the company has grown, particularly the cloud computing business, which had a growth of $18.9 billion. This covers its two important product lines: Azure Cloud Platform and Office 365 Product Suite.
Furthermore, the board was pleased to offer an additional bonus in the form of stock worth $11,434,557. This is by far a better year for Satya Nadella compared to last year, where he faced a dent in the bonus because of Microsoft’s smartphone business.