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Satya Nadella’s pay rose 22% in 2025, driven by Microsoft’s soaring shares and AI growth, making him one of the highest-paid CEOs in global tech
Nearly 90% of Satya Nadella’s pay was in Microsoft’s shares. (File Photo)
Microsoft CEO Satya Nadella received a sharp 22% increase in his annual salary for the financial year 2025, driven mainly by the strong performance of the company’s shares. According to documents filed by Microsoft, Nadella’s total earnings stood at $96.5 million (approximately Rs 8,415 crore), making it one of his highest pay packages to date.
In comparison, Nadella earned $79.1 million dollars (Rs 6,880 crore) in the previous financial year, up from $48.5 million (Rs 4,220 crore) in fiscal year 2024. This year, nearly 90% of his compensation came from company stock. As per the filing, Rs 7,310 crore ($84 million) was granted in the form of shares, while he received a cash bonus of Rs 826 crore ($9.5 million).
Nadella was not the only executive to benefit from the company’s growth. Microsoft’s Chief Financial Officer Amy Hood earned $29.5 million (Rs 2,566 crore), while the newly appointed Chief Commercial Officer Judson Althoff received $28.2 million (Rs 2,453 crore).
The surge in Nadella’s compensation is directly tied to Microsoft’s soaring stock price. In 2025 so far, Microsoft’s shares have climbed about 23%, outperforming the S&P 500 index which returned around 15% in the same period. Over the past three years, Microsoft’s market value has more than doubled, echoing investor confidence in the company’s aggressive push into artificial intelligence.
The company is scheduled to release its first-quarter results for fiscal year 2025 next week. In the Q4 report announced in July, Microsoft posted an 18% increase in revenue, its fastest growth in three years. Much of this success is attributed to the rapid expansion of its cloud computing platform, Microsoft Azure, which has become central to meeting rising AI-related demand from businesses worldwide.
Analysts say the company’s strong financial performance and its focus on AI innovation have not only rewarded investors but also significantly boosted executive pay, with Satya Nadella emerging as one of the highest-paid CEOs in the global tech industry.
October 22, 2025, 12:36 IST
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