Microsoft CEO Satya Nadella has now made $1 billion

Satya Nadella at Microsoft Build (2018)
(Image credit: Future)

What you need to know

  • Microsoft CEO Satya Nadella has reportedly brought in $1 billion since he entered his current role at Microsoft.
  • That figure includes Nadella's equity grants, salary, bonuses, and dividends.
  • Microsoft stock has climbed almost 1,000% since Nadella took over as CEO.

Fiscal reports and financial earnings don't always make mainstream headlines. They're important, of course, but few people memorize quarterly earnings and employee salaries. But certain thresholds turn heads when they're hit. That's the case with Microsoft Chairman and CEO Satya Nadella, who has now reportedly earned more than $1 billion in payouts during his time at the company.

A recent report by Bloomberg cited a regulatory filing that shed light on Nadella's payouts. The figure does not just refer to his salary. It includes equity grants, salary, bonuses, and dividends.

Microsoft representative Frank Shaw told Bloomberg that Nadella did not have a net worth of $1 billion and did not comment any further. Of course, that phrasing only covers the net worth of Nadella, not his career earnings from his position at Microsoft.

To illustrate how much incentives and other forms of income can add up to, Nadella's salary in fiscal year 2022 was $2.5 million but his stock awards were $42.269 million.

Nadella joins an exclusive club of CEOs that have earned $1 billion. He now sits alongside Apple CEO Tim Cook and a few others to hit the billion-dollar mark. While $1 billion is impressive, it's far from the most a CEO has brought in. NVIDIA CEO Jensen Huang is worth $42 billion, though it's worth noting that Huang is also the co-founder of NVIDIA.

Windows Central take

CEO incomes are a more complex topic than I can discuss in a few short paragraphs. I'm also not an expert on macroeconomics or ethics. Undoubtedly, people will debate if it's right for anyone to make $1 billion. What I'll say is that Satya Nadella has made Microsoft far more than $1 billion during his tenure, so it's not surprising that he's been compensated.

Microsoft stock has skyrocketed since Nadella took over as CEO and the money has made money hand over fist. There have been bumps along the road, of course, but the overall value of Microsoft is at an all-time high. Markets Insider pointed out that Microsoft's share price has increased almost 1,000% since Nadella became CEO.

Looking at a more recent win in a shorter timeframe, Microsoft's share value spiked $154 billion in a single day after the company unveiled the price of Microsoft 365 Copilot. With that bump, Microsoft's total cap reached $2.6 trillion.

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Sean Endicott
News Writer and apps editor

Sean Endicott is a tech journalist at Windows Central, specializing in Windows, Microsoft software, AI, and PCs. He's covered major launches, from Windows 10 and 11 to the rise of AI tools like ChatGPT. Sean's journey began with the Lumia 740, leading to strong ties with app developers. Outside writing, he coaches American football, utilizing Microsoft services to manage his team. He studied broadcast journalism at Nottingham Trent University and is active on X @SeanEndicott_ and Threads @sean_endicott_. 

  • fjtorres5591
    Previous reports have stated that Nadella's bonuses and awards in his contract are conditional and based on the company's fiscal performance rather than its stock price. He's making money for the company so why shouldn't be paid proportionally to what he makes for the owners?

    Especially when you consider those owners are 72.25% institutional, 6.23% Microsoft insiders, and 21.51% retail investors. The institutional stockholders are mostly mutual funds and pension funds, not Wall Street gamblers. A lot of people live at least in part off the dividends MS pays out.

    He's been a good steward of the company so whatever he makes in taking it to three billion is well earned.
    Reply
  • Sean Endicott
    Ya, one reason I phrased my thoughts at the end the way I did was that Nadella makes Microsoft more money than he costs the company. That being said, I think many argue that no one needs to be a billionaire, even if they earn more than that. To me, Nadella's compensation makes sense from Microsoft's perspective. He clearly helps the company grow and hit its targets. Whether it's moral, just, or right to have anyone be that rich is a question people other than Microsoft probably need to answer.
    Reply
  • fjtorres5591
    Sean Endicott said:
    Ya, one reason I phrased my thoughts at the end the way I did was that Nadella makes Microsoft more money than he costs the company. That being said, I think many argue that no one needs to be a billionaire, even if they earn more than that. To me, Nadella's compensation makes sense from Microsoft's perspective. He clearly helps the company grow and hit its targets. Whether it's moral, just, or right to have anyone be that rich is a question people other than Microsoft probably need to answer.
    Beg to differ.
    *Nobody* has the right to limit what others can honestly earn/achieve.
    History has proven over and over that any society that limits what their best and brightest can achieve only encourages them to go elsewhere. Brain drain kills countries. And creates others. US, Canada, Australia are three examples. Argentina was one such until Peron. Now they are donors rather than recipents of excellence. Others, too.

    Nadella himself is evidence of the old saying that "india people can succeed everywhere...except in india." That is coming to bite the homeland. As in FOXCONN backing out of a massive semiconductor foundry for lack of skilled technologists in the area. India losses are others' gains.

    Any society that limits itself from the full effort of its best is a crippled society.

    No artificial limits, please.
    For people or companies. There is no such thing as "too successful" as long as it's done honest!y. Note I say honestly and not "fairly". Fair is an artificial limit in itself. As long as it conforms to the legal framework, freedom to succeed is essential for a healthy economy.
    Reply