Satya Nadella’s Record $96.5 Million Pay Package Shows How Big Microsoft’s AI Bet Paid Off

If you were ever curious about how Microsoft’s AI push is reaping rewards, Satya Nadella’s recent salary figure has provided the answer. The CEO was paid a record $96.5 million in fiscal 2025, which is his largest payoff since becoming CEO in 2014.

According to a report by Bloomberg, the latest figures reflect a 22% rise from the $79 million in stock awards from last year. Most of it, $84.2 million, is based on Microsoft’s stock performance. Nadella also earned a $9.5 million cash bonus, a $2.5 million base salary, and an estimated $196,000 in other compensation.

Microsoft has been investing in AI more than ever, and Windows 11 is the proof. In the past few months, all of Microsoft’s apps and services have been deeply integrated with AI features. For example, recently, the company made “Hey Copilot” widely available, allowing users to naturally engage with AI throughout the system.

Copilot Vision and other AI features are also making Microsoft a presence felt in daily workloads, keeping the company relevant in the highly competitive AI race. Not to mention, the AI boom has also driven financial performance for the company.

Microsoft had a 15% revenue increase to $281.7 billion and a 16% rise in net income to $101.8 billion. The board hinted that over 95% of Nadella’s compensation is tied to performance, using growth numbers and shareholder returns.

Since 2014, Nadella’s pay has increased consistently, from $18 million in 2015 to $55 million in 2022, $79 million in 2024, and currently at $96.5 million. All that said, the AI strategy appears to be paying off for the Redmond Giant in 2025, a year that kept Microsoft in headlines due to frequent mass layoffs.

via: Business Insider