In fiscal 2025, Microsoft’s board disclosed that CEO Satya Nadella’s total compensation rose about 22%, from 79.1 million to roughly 96.5 million, the highest since he became CEO in 2014. The pay package followed a year with revenue up about 15%, operating income up 17%, and cloud revenue up 23% to nearly $169 billion, while Azure revenue grew 34% and surpassed $75 billion. The proxy statement cited “exceptional progress in artificial intelligence” and said Nadella’s leadership positioned Microsoft as a clear AI leader. The compensation structure includes a base salary of $2.5 million, a cash bonus of around $9.5 million, and roughly $84 million in stock awards tied to Microsoft’s share price. The proxy states that over 95% of his annual target compensation is performance-based, with at least 70% in equity. His performance stock awards are linked to long-term metrics, including total shareholder return relative to the S&P 500, Microsoft incentive plan revenue, Azure and other cloud services revenue, and Microsoft Cloud revenue. The CEO-to-median-employee pay ratio was nearly 480-to-1 as of 2025. Microsoft has avoided time-based stock grants for Nadella, using overlapping performance periods, TSR modifiers, and multiyear vesting to focus on long-term value creation.