New Microsoft CEO Satya Nadella could earn up to $18 million annually

By on February 6, 2014, 7:15 AM
microsoft, ceo, steve ballmer, earnings, satya nadella, salary

Newly appointed Microsoft CEO Satya Nadella will be earning a significantly higher paycheck than his predecessor, Steve Ballmer. According to a filing with the U.S. Securities and Exchange commission, Microsoft’s new chief could earn up to $18 million per year.

Nadella will start with a base salary of $1.2 million annually, up from the $697,500 that Ballmer took home. Further, he will be eligible for an annual share award bonus – something that wasn’t part of Ballmer’s package. Granted, Ballmer also owned nearly four percent of Microsoft’s stock, but that’s beside the point.

For example, the filing points out that Nadella will receive an EIP (equity incentive plan) stock award of $13.2 million for the company’s 2015 fiscal year.

It doesn’t end there either as Nadella will also receive an annual cash bonus based on performance, much like Ballmer did. Specifically, the bonus will be anywhere between zero to 300 percent of his base salary. That means a full cash bonus would net him an additional $3.6 million.

For reference, Ballmer only received $550,000 in bonus money last year – or roughly 79 percent of his potential bonus earnings.

Finally, Nadella can also be awarded additional stock options over the next several years if Microsoft hits certain share price goals. As Neowin points out, you’d need to be a pretty competent accountant to fully understand the formula set in place here but all said and done, he could earn tens of millions of dollars more if Microsoft is able to meet their targets.




User Comments: 10

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1 person liked this | Skidmarksdeluxe Skidmarksdeluxe said:

Oh no! He's really gonna struggle financially. How can he be satisfied with that pittance?

gamoniac said:

To put it in perspective... JP Morgan CEO Jamie Dimon makes $20 million (base salary).

Exxon Mobil's Rex Tillerson was paid $40.3 million in 2012. Leslie Moonves, CEO of CBS, was paid $62.2 million. Larry Ellison of Oracle brought home $96.12 million.

Reference: [link]

Guest said:

Give me the job for a year and then fire me.

bob333 bob333 said:

Give me the job for a year and then fire me.

Just give me the sign up bonus and fire me.

Guest said:

Give me the job for a year and then fire me.

Just give me the sign up bonus and fire me.

And don't forget to include severance package after firing me.

1 person liked this | cliffordcooley cliffordcooley, TechSpot Paladin, said:

I'm not impressed so far.

Next article please!

I want to know what he plans on doing with the company. I don't give a shit how well he is treated, while he is with the company.

tonylukac said:

Pardon me while my internet is down for a week so far due to upgrading to att uverse that doesn't work. But they really are cheapskates. Ballmer only got $600K? I would have been making at least half that much if I worked for the city of la and got into management. Where are those billions upon billions? The world only caters to investors, and only 90 of them have any money. I could go stand on the corner and pretend I'm collecting for a charity and get that much.

Sarcasm Sarcasm said:

Pardon me while my internet is down for a week so far due to upgrading to att uverse that doesn't work. But they really are cheapskates. Ballmer only got $600K? I would have been making at least half that much if I worked for the city of la and got into management. Where are those billions upon billions? The world only caters to investors, and only 90 of them have any money. I could go stand on the corner and pretend I'm collecting for a charity and get that much.

Balmer's "base" pay is $697k. The Bonus is what makes them filthy rich which is millions and millions of dollars.

Railman said:

Pardon me while my internet is down for a week so far due to upgrading to att uverse that doesn't work. But they really are cheapskates. Ballmer only got $600K? I would have been making at least half that much if I worked for the city of la and got into management. Where are those billions upon billions? The world only caters to investors, and only 90 of them have any money. I could go stand on the corner and pretend I'm collecting for a charity and get that much.

Balmer's "base" pay is $697k. The Bonus is what makes them filthy rich which is millions and millions of dollars.

And don't forget the shares! He must collect a reasonable dividend.

Sarcasm Sarcasm said:

And don't forget the shares! He must collect a reasonable dividend.

Yup that too. For the guy up above who thinks working for the city will net him millions and millions of dollars is only kidding himself.

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