After 15,000 Layoffs, Microsoft Boss Nadella’s Pay Climbs 22% to $96.5 Million
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What Just Happened?
In a year when Microsoft announced over 15,000 layoffs as part of a restructuring effort, CEO Satya Nadella saw his total compensation rise by 22% to a staggering $96.5 million. Like many executives of major tech firms, most of Nadella’s income comes from stock awards, but he also received roughly $9.5 million in cash incentives.
Last year, Nadella’s pay had already jumped 63% to $79.11 million, despite cutting his cash bonus by half at his own request. That 2024 package included $5.2 million in cash and $71 million in stock awards.
A Record Year for Microsoft
According to Microsoft’s proxy statement filed last week, fiscal year 2025 was even more profitable for both the company and its CEO. Nadella’s stock awards rose to $84 million, cash incentives increased to $9.5 million, and his base salary came in at $2.5 million.
Microsoft justified the increase as a move to “encourage Nadella’s continued leadership while driving business growth and shareholder value.”
Key Financial Highlights (FY 2025)
- Total Revenue: $281.7 billion (↑ 15%)
- Net Income: $101.8 billion (↑ 16%)
- Stock Price: $354 → $523 (+47.7%)
Nadella’s Legacy
Since taking over from Steve Ballmer in 2014, Nadella has transformed Microsoft into one of the world’s most valuable corporations. During his tenure:
- Revenue: Tripled
- Net Income: Quadrupled
- Diluted EPS: Quintupled
- Market Cap: $300 billion → $3.8 trillion
The Human Cost
While Microsoft’s financials are soaring, the same can’t be said for thousands of its employees. The company has laid off around 15,000 workers in 2025 — about 6,000 in May (roughly 3% of its global workforce) and another 9,000 in July.
The layoffs coincided with Microsoft’s massive $80 billion investment in AI infrastructure and its push toward AI-enabled productivity. The company didn’t explicitly cite AI as the reason for the cuts, instead pointing to “shifting business priorities,” “efficiency improvements,” and “new ways of working.”
Pay Disparity
According to PayScale, the average Microsoft employee salary in the U.S. is approximately $132,311 per year — roughly 0.13% of what Nadella earns annually.