Microsoft CEO Nadella Received Pay Package of $84 Million
IMAGE: Satya Nadella, Microsoft Corp Chief Executive Office »
Microsoft Corp. (MSFT) Chief Executive Officer Satya Nadella was given a compensation package worth as much as $84.3 million for the software maker’s latest fiscal year, about 11 times his pay from the previous year.
Nadella was named CEO about five months before the end of the year, which ended in June. He was granted share awards potentially worth $59.2 million in connection with his promotion to CEO, according to a filing yesterday. He also received a one-time retention award worth $13.5 million.
The disclosure of Nadella’s compensation follows a gaffe about raises he made earlier this month at a women’s conference. He said he was advised early in his career to stop bucking for a promotion and that those who take the long view will eventually be rewarded. He later apologized for those statements, saying that they didn’t help to close the gender gap in pay.
In order for Nadella to earn the stock awards, Microsoft must outperform 60 percent of the Standard & Poor’s 500 Index, according to the proxy. If the company outperforms 80 percent of the index, the award could be increased to shares worth $88.8 million.
For Microsoft’s current fiscal year, Nadella is receiving a compensation package of as much as $18 million, including a salary of $1.2 million, cash bonus of three times base pay and a stock award worth $13.2 million, the company said in a filing in February.
Chief Financial Officer Amy Hood received a retention award of $4.67 million, and Chief Operating Officer Kevin Turner was given a one-time award of $10.1 million, according to yesterday’s filing. The retention awards will be paid out in installments.
Microsoft’s total pay figures are based on data from the U.S. Securities and Exchange Commission-mandated summary compensation table, which reports some awards in the year they’re granted rather than for the year they’re earned. Some awards are restricted, vesting and paying out over a set time frame, and the receipt of others may depend on future performance goals. The summary compensation table also counts changes in pension and the value of perks.
Microsoft’s shares rose 1 percent to $44.08 at yesterday’s close in New York, giving the Redmond, Washington-based company a market capitalization of $363.9 billion, surpassing Google Inc.’s $355.9 billion market value.
Article Credit: Bloomberg