What it’s worthwhile to know
- Microsoft CEO Satya Nadella obtained just under $55 million price of compensation in 2022.
- That marks a ten% improve in comparison with 2021.
- 96% of his compensation was performance-based, up from 71% in 2021.
Microsoft CEO Satya Nadella noticed a ten% improve in compensation in 2022 in comparison with the earlier 12 months. Microsoft’s Proxy Assertion 2022 broke down an extended record of figures, together with how a lot cash Nadella would make this 12 months. Whereas the CEO’s base wage of $2.5 million is unchanged, his inventory awards went as much as $42.269 million (up from $33 million in 2021).
“Throughout fiscal 12 months 2022, we addressed the necessity to present ongoing incentives to Mr. Nadella following the February 2021 last vest of long-term efficiency inventory award granted at Mr. Nadella’s 2014 promotion to CEO,” mentioned Microsoft’s SEC submitting.
“Mr. Nadella’s criticality to Microsoft’s ongoing success was an everyday focus of suggestions we obtained from shareholders, which is per our unbiased Board members’ excessive confidence in Mr. Nadella’s distinctive management of Microsoft.”
The submitting outlines its pay for efficiency figures:
- Over 95% of the annual goal compensation alternative for the CEO is performance-based and over 50% for our different Named Executives
- Our annual money incentive is set based mostly on pre-established monetary targets (70% for our CEO and 50% for our different Named Executives), with the opposite portion decided based mostly on operational efficiency in three weighted efficiency classes
- The metrics for our efficiency inventory awards are reviewed yearly to make sure they mirror key enterprise developments that drive long-term progress
- Our efficiency inventory awards (“PSAs”) embody a relative whole shareholder return (“TSR”) modifier to reward vital optimistic outperformance and scale back rewards for underperformance to align executives’ and shareholders’ long-term pursuits
- At least 70% of goal compensation for our Named Executives was equity-based, with common throughout all Named Executives over 80%, offering incentives to drive long-term enterprise success and direct alignment with returns to shareholders
Arguably a very powerful level right here is that over 95% of Microsoft CEO Satya Nadella’s compensation is tied to firm efficiency. It is also price noting that his base wage, whereas excessive, is comparatively low when in comparison with his inventory awards and different compensation.