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CEO Satya Nadella is getting a big bump in his compensation, as the company’s stock price has continued to rally, propelled by the boom in artificial intelligence.
Nadella’s total pay for fiscal 2025 climbed 22% to $96.5 million from $79.1 million last year, Microsoft said in a proxy filing after the close of regular trading on Tuesday. That includes more than $84 million in stock awards and over $9.5 million in Nadella’s cash incentives.
The pay plan is largely tied Microsoft’s share performance. So far in 2025, Microsoft’s stock price has risen by 23%, topping the S&P 500′s 15% gain. The shares have more than doubled in valued over the past three years.
Microsoft is scheduled to report results for the fiscal first quarter next week. In its fourth-quarter disclosure in July, the company reported better-than-expected earnings and revenue, with sales climbing 18%, the fastest growth in more than three years. Microsoft Azure business is driving expansion as companies’ cloud infrastructure needs grow to meet AI demand.
