£52m pay package for Microsoft boss

Published: Tuesday 21st October 2014 by The News Editor

Comments (0)

Microsoft has given its new boss Satya Nadella a pay package worth 84.3 million dollars (£52.3m).

Most of it is in the form of long-term stock awards.

A regulatory document shows the software giant’s chief executive received a salary for the fiscal year that ended on June 30 of 918,917 dollars (£570,755) and a 3.6-million (£2.2m) bonus. He also was given stock awards worth nearly 79.8 million dollars (£49.5m) but most of the payments will be made over several years.

Microsoft said Mr Nadella’s actual compensation for the company’s fiscal year 2014 was worth 11.6 million dollars (£7.2m) after excluding the long-term stock awards and a 13.5 million (£8.4m) one-time retention award he received before his promotion to CEO.

Mr Nadella was named CEO in February and is only the third chief executive in the company’s history.

The company, based in Redmond, Washington, said in the regulatory filing that it had to change its pay structure because former CEOs Bill Gates and Steve Ballmer, were not given stock awards because they were already among Microsoft’s largest shareholders.

Mr Nadella’s pay package includes a long-term performance-based stock award valued at 59.2 million dollars (£36.7m). He will not receive any of that until 2019 and it will depend on the performance Microsoft’s stock relative to other companies in the Standard & Poor’s 500 index.

The Microsoft chief made headlines earlier this month with remarks he made at a women-in-computing conference, where he suggested that women do not need to ask for pay rises and should just trust that the system will give them what they are worth. The comment drew immediate criticism, although Mr Nadella later said he was repeating advice that he been given in his own career.

He apologised and later announced in a companywide memo that all Microsoft workers would receive expanded training on how to foster an inclusive culture.

The Associated Press formula for executive compensation calculates an executive’s total compensation during the last fiscal year by adding salary, bonuses, perks, above-market interest the company pays on deferred compensation and the estimated value of stock and stock options awarded during the year.

Published: Tuesday 21st October 2014 by The News Editor

Comments (0)

Local business search