 "Microsoft CEO Nadella received $84-mn package")
Microsoft Chief Executive Officer Satya Nadella was given a compensation package worth as much as $84.3 million for the software maker's latest financial year, about 11 times his pay from the previous year.
Nadella was named CEO about five months before the end of the year, which ended in June. He was granted share awards potentially worth $59.2 million in connection with his promotion to CEO, according to a filing on Monday. He also received a one-time retention award worth $13.5 million.
The disclosure of Nadella's compensation follows a gaffe about raises he made earlier this month at a women's conference. He said he was advised early in his career to stop bucking for a promotion and that those who take the long view will eventually be rewarded. He later apologised for those statements, saying they did not help to close the gender gap in pay.
For Microsoft's current financial year, Nadella is receiving a compensation package of as much as $18 million, including a salary of $1.2 million, cash bonus of three times base pay and a stock award worth $13.2 million, the company said in a filing in February.
Executive retention
Chief Financial Officer Amy Hood received a retention award of $4.67 million, and Chief Operating Officer Kevin Turner was given a one-time award of $10.1 million, according to Monday's filing. The retention awards will be paid out in instalments.
Microsoft's total pay figures are based on data from the US Securities and Exchange Commission-mandated summary compensation table, which reports some awards in the year they are granted rather than for the year they are earned. Some awards are restricted, vesting and paying out over a set time frame, and the receipt of others may depend on future performance goals. The summary compensation table also counts changes in pension and the value of perks.
Microsoft's shares rose one per cent to $44.08 at Monday's close in New York, giving the Redmond, Washington-based company, a market capitalisation of $363.9 billion, surpassing Google's $355.9 billion market value.
Also read: 'Good Karma' Nadella's big payday offers cold comfort
FAT PAY
According to Microsoft's proxy statement filed with the US Securities and Exchange Commission, Nadella received:
Nadella was named CEO about five months before the end of the year, which ended in June. He was granted share awards potentially worth $59.2 million in connection with his promotion to CEO, according to a filing on Monday. He also received a one-time retention award worth $13.5 million.
The disclosure of Nadella's compensation follows a gaffe about raises he made earlier this month at a women's conference. He said he was advised early in his career to stop bucking for a promotion and that those who take the long view will eventually be rewarded. He later apologised for those statements, saying they did not help to close the gender gap in pay.
Also Read
For Nadella to earn the stock awards, Microsoft must outperform 60 per cent of the Standard & Poor's 500 Index, according to the proxy. If the company outperforms 80 per cent of the index, the award could be increased to shares worth $88.8 million.
For Microsoft's current financial year, Nadella is receiving a compensation package of as much as $18 million, including a salary of $1.2 million, cash bonus of three times base pay and a stock award worth $13.2 million, the company said in a filing in February.
Executive retention
Chief Financial Officer Amy Hood received a retention award of $4.67 million, and Chief Operating Officer Kevin Turner was given a one-time award of $10.1 million, according to Monday's filing. The retention awards will be paid out in instalments.
Microsoft's total pay figures are based on data from the US Securities and Exchange Commission-mandated summary compensation table, which reports some awards in the year they are granted rather than for the year they are earned. Some awards are restricted, vesting and paying out over a set time frame, and the receipt of others may depend on future performance goals. The summary compensation table also counts changes in pension and the value of perks.
Microsoft's shares rose one per cent to $44.08 at Monday's close in New York, giving the Redmond, Washington-based company, a market capitalisation of $363.9 billion, surpassing Google's $355.9 billion market value.
Also read: 'Good Karma' Nadella's big payday offers cold comfort
FAT PAY
According to Microsoft's proxy statement filed with the US Securities and Exchange Commission, Nadella received:
- $59.2 million in stock under a long-term incentive scheme that stretches out over seven years
- $13.5 million in stock to stay at the company while it was searching for its next CEO
- $11.6 million in pay package in 2014, including $918,000 in salary, a $3.6-million cash bonus, and annual stock award valued at over $7 million