Microsoft paid its Chief Executive Satya Nadella $17.7 million in the last fiscal year, down three percent from the year before.
His compensation comprises of $5.66 million in salary, and a bonus of $12 million in stock award – half of which vest in 2018, if Microsoft achieves the revenue targets, operating income and a variety of commercial cloud subscribers targets with the share price outperforming 60 percent of the companies in the Standard & Poor’s 500 Index.
That might look like a lot of conditions – but that’s how the CEO job has to be. The rest of his stock award will vest in 2019, but only if he chooses to remain with Microsoft.
The three percent drop in Nadella’s compensation is the result of a small reduction in his stock-based compensation.
While consumers haven’t been euphoric with Nadella’s heavy-enterprise focused strategies, the shareholders have been rewarded with a 15 percent increase in share prices over the last financial year.
Microsoft has also been busy trimming the fat off the mammoth that the company has become – loss-making products such as Microsoft Band are being discontinued, acquisitions such as Skype are being reorganized, and Windows Mobile has taken a backstage, at the cost of losing the confidence of Microsoft’s OEM partners.
Along with Nadella, four other executives had their compensations detailed as well – Nadella is obviously the highest-paid executive.
In the list, Kevin Turner should be the 2nd highest-paid executive – but he isn’t; despite the $12.9 million he made, he left Microsoft near the end of the fiscal year.
Which makes Amy Hood the 2nd highest-paid executive; the Chief Financial Officer who made $10.3 million in the last fiscal year – an increase of 19% over the previous year.
While Microsoft seems to be doing well financially – and is rewarding its executives for the stellar performance – its recent love for the enterprise market does raise some questions for where it is heading as a company.
Source | Image Credit: Seattle Times