POOR GUY: Microsoft CEO Asks for 50% Pay Cut, Gets a 63% Increase and a $79,106,183.00 Salary Instead.

toner · 2024-10-29T15:33:13+00:00

POOR GUY: Microsoft CEO Requests 50% Pay Cut, Ends Up with 63% Increase Instead. Satya Nadella asked to reduce his incentive payout by half due to security failures. Microsoft agreed, but surprisingly raised his total payout by 63%. Documents filed with the Securities and Exchange Commission reveal that Nadella made this unusual request himself, citing his "personal commitment to security" and accountability as CEO. He believed it was necessary to reflect the urgency of changes required by the current cybersecurity landscape. The company's troubles began in January when it acknowledged that the email accounts of several senior staff had been compromised, likely by Russian hackers. In April, the Department of Homeland Security released a report detailing a Chinese attack on Microsoft-hosted government accounts, including the inbox of U.S. Commerce Secretary Gina Raimondo. Microsoft President Brad Smith was called before Congress to address the incident. In May, Nadella warned employees that compensation could be tied to meeting security objectives. "The Board reviewed the Company’s performance and believes that Mr. Nadella provided exceptional leadership, crucial for the company's strong performance and strategic repositioning," the SEC documents state. They also acknowledged Nadella's request for a pay reduction, ultimately approving a fiscal year 2024 cash incentive of $5.2 million, over 50% less than his potential award. While Nadella's base salary stands at $2.5 million, his total compensation—factoring in stock awards and other payments—rose to $79,106,183, a 63% increase from last year's $48,512,537. Losing that $5.5 million may sting, but he's still doing quite well.

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toner
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POOR GUY: Microsoft CEO Requests
50% Pay Cut, Ends Up with 63% Increase Instead.
Satya Nadella asked to reduce his incentive payout by half due to security failures. Microsoft agreed, but surprisingly raised his total payout by 63%.

Documents filed with the Securities and Exchange Commission reveal that Nadella made this unusual request himself, citing his “personal commitment to security” and accountability as CEO. He believed it was necessary to reflect the urgency of changes required by the current cybersecurity landscape.

The company’s troubles began in January when it acknowledged that the email accounts of several senior staff had been compromised, likely by Russian hackers. In April, the Department of Homeland Security released a report detailing a Chinese attack on Microsoft-hosted government accounts, including the inbox of U.S. Commerce Secretary Gina Raimondo. Microsoft President Brad Smith was called before Congress to address the incident.

In May, Nadella warned employees that compensation could be tied to meeting security objectives.

“The Board reviewed the Company’s performance and believes that Mr. Nadella provided exceptional leadership, crucial for the company’s strong performance and strategic repositioning,” the SEC documents state. They also acknowledged Nadella’s request for a pay reduction, ultimately approving a fiscal year 2024 cash incentive of $5.2 million, over 50% less than his potential award.

While Nadella’s base salary stands at $2.5 million, his total compensation—factoring in stock awards and other payments—rose to $79,106,183, a 63% increase from last year’s $48,512,537. Losing that $5.5 million may sting, but he’s still doing quite well.
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October 29, 2024 at 3:33 PM

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