Microsoft’s stock has risen by 35% percent this year. Some traders believe that it will continue to rise as the company has reinvested $40 billion in itself. They have also raised the dividend for their shareholders, recently. In the midst of all this, Indian born CEO Satya Nadella Satya Nadella got a 66% raise in his monthly salary in the company’s latest fiscal year. This is an outcome of his result-oriented approach.
Since getting appointed as a CEO in 2014, Nadella has done great things with Microsoft’s cloud computing services like Azure. He took some major decisions that made Azure one of the best cloud computing services for building, testing, deploying, and managing applications and services. As a result of this, he was awarded an $84 million pay package the same year. This also made him one of the 15 top-paid CEOs in the world, in 2014.
Skipping ahead to 2019, Satya Nadella’s total salary is now 42.9 million US dollars. A pay rise of 17.1 million US dollars in a span of a year. As of now, his base salary is $2.3 million, the rest of his earnings comes from incentives offered by Microsoft in the form of stock awards, non-equity incentive plan compensation, and stock options. Stock awards are offered as a bonus to the employee for attaining the set business goals.
Who is Satya Nadella? How did he become a CEO of a big tech like Microsoft?
Satya Nadella was born and brought up in Hyderabad, India. He graduated from Manipal Institute of Technology and was mainly supervised by his father who worked as a civil servant for the Indian Administrative Service of the Government of India. The decision to become an engineer was his and he always wanted to work for a major firm like Microsoft.
His journey from being a software engineer at Sun Microsystems to becoming the CEO of Microsoft was not easy. Since joining Microsoft Nadella has worked on major projects involving cloud computing. He later became the senior vice-president of Research and Development (R&D) for the Online Services Division and subsequently the vice-president of the Microsoft Business Division.
What are some achievements of Satya Nadella that justify a 66% raise in his paycheck?
The market capitalization of Microsoft has risen by 500 billion dollars since Nadella took over the role of the CEO from Steve Ballmer. Such a huge turnaround has never been reported before. His focus on cloud computing is what triggered the upward spiral that Microsoft is on at the moment. 20% of Microsoft’s total revenues come from its cloud computing services.
So, I guess, market capitalization alone should be the yardstick to measure Nadella’s contributions to the ecosystem that he fostered at Microsoft. Not only Nadella did well with Microsoft’s legacy products, but he also encouraged innovation and research. He also built enormous trust with the technical team. Hence, they were able to deliver projects on time.