According to the power of attorney signed by Microsoft’s shareholders in 2022, Microsoft CEO Satya Nadella, who took office in 2014, received a large salary increase this year, with an annual salary of 54.946 million USD, an increase of 10% over the previous year.
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Nadella’s base salary was unchanged at $2.5 million, and stock awards were $42.269 million, up from $33 million the year before. Non-equity incentive plan compensation decreased from $14.2 million to $10.06 million. The last item classified as “all other compensation” was $110,250, of which $100,000 was a charitable donation.
About 96% of this nearly $55 million compensation package is performance-based, up from 71% in 2021. It is worth noting that the median salary of Microsoft employees in fiscal 2022 is $190,302. In fiscal 2022, Nadella’s annual total compensation to median employee salary is 289 to 1.
In the year ended June 30, 2022, Microsoft’s revenue rose 18% to $198.3 billion, with revenue from its cloud computing segment rising 32% to $91.2 billion. Operating profit rose 19% to $83.4 billion, while net income also rose 19% to $72.7 billion.
When Nadella took over as CEO, Microsoft had $86.8 billion in revenue, $22.1 billion in net income, and $2.63 in earnings per share, compared with $9.65 per share at press time. Microsoft shareholders want to ensure Nadella remains in office and has high confidence in his leadership. Microsoft’s growth has slowed over the past year, and its stock price has fallen 32% over the past 12 months.
