Microsoft CEO Nadella’s pay hits record $96.5 million amid AI boom

Microsoft Chief Executive Officer Satya Nadella’s annual compensation surged to a record $96.5 million for the 2024–25 financial year, marking his highest pay package since taking the helm more than a decade ago, Bloomberg reported. The company’s board credited the sharp rise to Nadella’s leadership in positioning Microsoft as a global frontrunner in artificial intelligence.

In a note to shareholders included in a regulatory filing on Tuesday, Microsoft’s compensation committee said the results “demonstrate that Satya Nadella and his leadership team have positioned Microsoft as a clear artificial intelligence leader for this generational technology shift.”

The filing revealed that around 90% of Nadella’s compensation — including a $2.5 million base salary — is in Microsoft stock. The figure represents a significant jump from the $79.1 million he earned in the previous financial year. Nadella, who became Microsoft’s third CEO in 2014, has led the company through one of its most transformative periods since the Gates era.

Nadella’s senior leadership team also saw compensation increases during the year ending June 2025. Chief Financial Officer Amy Hood earned $29.5 million, while Judson Althoff, recently appointed to lead Microsoft’s commercial business, received $28.2 million, the filing showed.

Microsoft’s share price has climbed 23% this year through Tuesday’s close, fuelled by strong growth in its Azure cloud division and rising investor confidence in its AI strategy. The company’s deep integration of AI tools, including its Copilot software suite and OpenAI-powered features across Windows and Office, has reinforced its position as the world’s largest software firm by market capitalisation.

Nadella’s most significant achievement has been Microsoft’s pivot from a legacy software provider to a cloud and AI powerhouse. Under his leadership, Azure has become a core growth engine, rivalled only by Amazon Web Services.

Beyond cloud computing, Nadella has steered Microsoft through several high-profile acquisitions — including LinkedIn and GitHub — to expand its footprint across professional networking and software development. The company also completed its $69 billion acquisition of Activision Blizzard, strengthening its position in the global gaming industry.

Nadella’s long-term bet on OpenAI, which began with a $1 billion investment in 2019 and was later expanded to $10 billion, has placed Microsoft at the centre of the AI revolution. The partnership has allowed Microsoft to embed generative AI features across nearly every product line, a move widely seen as reshaping enterprise productivity software.

Nadella’s compensation as a reflection of Microsoft’s sustained growth momentum and its aggressive pursuit of AI opportunities. As the company prepares for another year of expansion, questions around regulation, data security and responsible AI deployment remain central to its global strategy.