Friday , 21 October 2016
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Microsoft Reports Pay of Top Execs; Nadella Received $17.7 Million

Microsoft paid Chief Executive Satya Nadella $17.7 million during the company’s most recent fiscal year, down 3 percent from a year earlier, according to a securities filing Monday.

The decline was the result of a modest drop in his stock-based compensation, which totaled $12 million during the year ended June 30. Nadella’s base salary of $1.2 million was unchanged from the prior year.

Nadella [pictured here] and the four other executives whose compensation was detailed in the company’s annual proxy statement made at least 100 percent of their cash bonuses, which the company attributed to Microsoft’s business performance and returns to shareholders.

The disclosures were included in the slate of company business to be voted on at Microsoft’s shareholders meeting Nov. 30 in Bellevue.

Kevin Turner, Microsoft’s chief operating officer until his departure from the company in July, was paid $12.9 million during the fiscal year, up 6 percent from a year earlier.

Chief Financial Officer Amy Hood received $10.3 million, up 19 percent, and President and Chief Legal Officer Brad Smith was paid $8.6 million, up 27 percent.

Business-development chief Peggy Johnson took home $6.7 million, down 54 percent. The former Qualcomm executive’s pay package last year included a cash hiring bonus of $2.5 million and a $5.3 million stock award.

In response to concerns about subjective standards leading to inflated paychecks, Microsoft has been adding financial- and performance-based metrics to its executive-compensation formulas.

A formula new to the current, 2017 fiscal year will base executives’ performance-based stock award, or 36 percent of their target compensation, on company specific metrics.

Two-thirds of that total will be based on revenue from business-focused cloud-computing services and the number of subscribers to those services.

The rest will be tied to the number of users of Windows 10, and the profitability of the Surface, search, gaming, and consumer versions of Office.