Microsoft gave CEO Satya Nadella a fiscal 2024 pay raise of greater than $30 million. However, with no series of cyberattacks, his total package would have been $5.5 million higher.
According to a , Nadella received $79.1 million for the fiscal 12 months that ended June 30, up from $48.5 million the previous 12 months Proxy Filing on Thursday. The majority of his salary comes from stocks. The board's compensation committee said Nadella asked that the money incentive portion reflect safety considerations.
The requested cut got here after the U.S. Department of Homeland Security released a report in April that followed an independent review of China's breach of the e-mail accounts of U.S. government officials. Microsoft disclosed this incident in July 2023.
In January this 12 months, Microsoft said that Russian intelligence had accessed the e-mail accounts of a number of the company's top managers.
Microsoft said it will overhaul its practices to deal with the deficiencies highlighted in the federal government report. It states: “Customers would benefit from the CEO and board of directors focusing directly on the company’s safety culture.”
Nadella responded by telling employees the next: May memo that Microsoft would put security above all else. In June, Microsoft announced that it will consider employees' cybersecurity efforts when determining their compensation.
The money incentive portion of Nadella's salary primarily takes under consideration the software maker's performance against revenue and operating income targets. It was originally imagined to be $10.66 million, but the total board approved a money incentive of $5.2 million as a substitute.
“Mr. Nadella agreed that the company's performance was extremely strong, but in light of his personal commitment to safety and his role as CEO, he asked the board to consider deviating from the established performance metrics and reducing his cash incentive to his “The focus and speed required by the changes demonstrated by today’s cybersecurity threat landscape were necessary,” the committee wrote.
Microsoft's security business generated more than $20 billion in revenue in 2022, more than the combined revenue of many security companies.
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