I think it's fair to say that the Milky Bars are on Microsoft CEO Satya Nadella this week. It's been reported that the executive was paid an eye-watering $42.9 million for the latest fiscal year that ended June 30 - a 66 percent increase from the previous year.
I couldn't begin to imagine what that much money looks like, but I bet Nadella has a pool full of gold at home that he dives into every day, Scrooge McDuck style. Please understand though, I'm not bitter. Actually, I am. I'm very bitter.
This information comes from Microsoft's latest annual proxy statement filed with the United States Securities & Exchange Commission (via CNBC), though the CNBC notes that this year's figure is down from the $84.3 million Nadella received in the 2014 fiscal year, when he took over from Steve Ballmer. I'm sure Nadella is heartbroken.
Advert
Microsoft explained that Nadella's increased pay is the result of "strategic leadership, including his efforts to strengthen trust with customers, drive for a company-wide culture change, and successful entry and expansion into new technologies and markets."
The company also stated that that it decides on pay scales for its executive officers so that it can "attract, motivate, and retain the key executives who drive our success and industry leadership while considering individual and Company performance and alignment with the long-term interests of our shareholders."
I'm sure you'll also be thrilled to know that Microsoft's executive compensation committee (because of course that's a thing) considers several factors when deciding how much more money to throw at the higher-ups, including role and responsibility, third-party compensation surveys and public data from other companies.
Executives also receive performance-based bonuses, so given that Nadella's salary is a meager $2.5 million, he earns most of his pay via earns most of his money through stock rewards and other bonuses.
Advert
I've no doubt your Friday is all the better for knowing how a company that makes a sickening amount of money decides how to dish out sickening chunks of that money to its executives. I know I've had a wild time learning about it.
To be fair, Microsoft has had a pretty good time of it lately. Last year, the company briefly managed to overtake Apple to become the highest-valued public company in the world, and in April this year Microsoft became a trillion-dollar company, with valuation remaining nice and high ever since.
It'll be interesting to see whether or not Microsoft is able to improve on these successes as it moves into 2020 and releases the next-generation Xbox during the Holiday period. Given the console is launching with Halo Infinite, I'd say it'll probably get off to a pretty strong start.
Featured Image Credit: MicrosoftTopics: Xbox One