Satya Nadella’s pay soars to $96.5 million in FY25, highest since becoming Microsoft CEO

Microsoft CEO Satya Nadella’s total compensation surged to $96.5 million in FY25 — his highest since taking over in 2014. The jump reflects Microsoft’s AI-led growth, with about 90% of his pay coming from company shares tied to performance.

Mumbai: Microsoft CEO Satya Nadella’s total compensation for the financial year 2024–2025 has risen to $96.5 million — his highest since taking charge of the company more than a decade ago.

The sharp increase reflects Microsoft’s major progress in artificial intelligence (AI) under his leadership.

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In a note to shareholders, the company’s board said Nadella and his leadership team have successfully positioned Microsoft as a global leader in AI during a “generational technology shift.”

The company’s regulatory filing shows that around 90 per cent of Nadella’s pay comes in the form of Microsoft shares, in addition to a $2.5 million base salary.

In the previous financial year, Nadella earned $79.1 million. He became Microsoft’s third CEO in 2014, succeeding Steve Ballmer and co-founder Bill Gates.

The filing also revealed higher pay packages for Nadella’s top executives. Chief Financial Officer Amy Hood earned $29.5 million, while Judson Althoff, who now heads Microsoft’s commercial business, received $28.2 million.

Microsoft shares have gained about 23 per cent this year, driven by steady growth in its Azure cloud computing business, which continues to outperform competitors like Amazon Web Services.

Since becoming CEO, Nadella has transformed Microsoft into a cloud-first and AI-driven company.

His early bet on cloud computing helped Azure become one of the top players in the global market.

He also expanded Microsoft’s portfolio through key acquisitions, including LinkedIn, GitHub, and gaming giant Activision Blizzard, strengthening the company’s presence in software, professional networking, and entertainment.

One of Nadella’s most significant moves was backing OpenAI when it was still a little-known startup.

Microsoft’s initial $1 billion investment in OpenAI grew into a much deeper partnership, with an additional $10 billion investment as ChatGPT became a household name.

Today, AI features powered by OpenAI are integrated across almost all Microsoft products, from Office tools to cloud services.

Born and raised in Hyderabad, Nadella completed his engineering degree from Mangalore University in 1988 and later pursued a master’s in computer science from the University of Wisconsin–Milwaukee.

He joined Microsoft in 1992 and quickly rose through the ranks, leading several divisions before taking over as CEO in 2014.