Satya Nadella’s compensation package rose 29 percent during fiscal
2018, according to an SEC filing.
Strong financial growth and leadership in key areas at
Microsoft led CEO Satya Nadella to receive an increase to his compensation
package of 29 percent in fiscal year 2018.
Nadella received total compensation of $25.8 million (Rs.190 crores) in
fiscal 2018, which ended June 30, according to a proxy filing Tuesday with the
U.S. Securities and Exchange Commission.
That's compared to pay of $20 million during the previous
fiscal year, and $17.7 million in compensation during fiscal 2016.
The increase in CEO pay came during a year that saw
Microsoft revenue surge to $110.36 billion, up 14.2 percent from $96.57 billion
during fiscal 2017.
Nadella's pay was based upon both quantitative and
qualitative performance, according to Microsoft's proxy filing. Under his
leadership, Microsoft "has seen strong execution of our vision for the
intelligent cloud and the intelligent edge in a highly competitive
market," the filing says.
The proxy filing also mentions highlights such as the
introduction of the bundled Microsoft 365 offering, Azure product expansions
such as the hybrid cloud service Azure Stack, cybersecurity enhancements and
the company's gaming strategy.
Additionally, "Mr. Nadella’s strategy for LinkedIn
integration has been successful, taking advantage of synergies while
maintaining LinkedIn’s operating independence," the filing says. "The
Company’s strategic acquisition of GitHub, pending regulatory approval,
represents an important new way to serve developers and contribute to long-term
sustainable growth."
Nadella's compensation for fiscal 2018 included a base
salary of $1.5 million and stock awards of $16.8 million.
He received a cash incentive of $7.4 million for meeting or
exceeding all performance targets, Microsoft said in its proxy filing.
Ric Opal, vice president at Oak Brook, Ill.-based SWC
Technology, told CRN that "all the gears of the machine are spinning in a
proper cadence" at Microsoft right now.
Among Nadella's most important moves over the years have
been the changes to the culture at Microsoft, he said. "That changing of
the culture was the complete catalyst to everything that's been going on,"
Opal said.
Nadella has also "demonstrated a willingness to
partner," according to Opal, which has helped drive the company's growth
with the channel.
It's also critical that the leadership team overall at
Microsoft is extremely strong, he said.
"I don't see it being the Satya Nadella show. I see it
being the Microsoft show," Opal said.
With rising interest rates and other possible economic
impacts ahead, Opal believes the leadership at Microsoft is poised to
"proceed through just about anything."
"Now, as our economy changes, do they perform at the
same caliber and rate? I think the answer to that question is yes," he
said.
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