satya-nadella-salary

Satya Nadella Salary

Satya Nadella, in 2022, made most of his money from his performance-based compensation, which represented 96% of the total compensation. Indeed, on a base salary of $2.5 million in 2022, Nadella made in total (comprising stock awards and non-equity incentives) over $54.9 million in compensation. Compared to a compensation of $49.8 million in 2021 and $44.3 million in 2020.

Satya Nadella’s career in a nutshell

Satya Nadella rose to the CEO role over the years, having held various positions at Microsoft since 1992.

Below is a timeline:

  • Various positions of increasing authority (1992-2008)
  • Senior Vice President, Search, Portal, and Advertising (2008-
    2009)
  • Senior Vice President, Online Services Division (2009-2011)
  • President, Server and Tools (2011-2013)
  • Executive Vice President, Cloud and Enterprise (2013-2014)
  • Chief Executive Officer and Director (2014-2021)
  • Chairman and Chief Executive Officer (2021 to present)

Between 2020-22 most of Satya Nadella’s compensation was performance-based.

ceo-pay-mix

Large tech players all leverage performance-based compensation for the top executive team.

Indeed, the top executive team’s primary earnings are based on performance.

Take the case of Sundar Pichai.

sundar-pichai-salary
While Sundar Pichai perceived a base salary of 2 million in 2022, he made most of his money from a multi-year performance-based compensation. In 2019, Pichai received stock awards for over $276 million that can be vested over the years. In 2020-21 Pichai perceived a base salary of $2 million and additional stock awards for over $5.4 million and $3.36 million, respectively.

As you can see while the base salary has remained stable ($2 million per year) the performance-based compensation moves based on the targets the company has set.

Same for Amazon’s CEO, Andy Jassy.

andy-jessy-net-worth
Amazon’s CEO Andy Jessy, joined Amazon in the very early days (1997), and he now has 94,729 shares, making him a top individual shareholder of the company. Those shares are worth around $9 million. However, over the years, Andy Jessy might have sold part of the shares he got over the years, and he has a $175,000 salary, which makes him a millionaire.

Key Highlights:

  • Satya Nadella’s Compensation Growth:
    • In 2022, Satya Nadella, CEO of Microsoft, earned $54.9 million in compensation.
    • Performance-based compensation constituted 96% of his total compensation, with a base salary of $2.5 million.
    • This marked an increase from his compensations of $49.8 million in 2021 and $44.3 million in 2020.
  • Career Progression of Satya Nadella:
    • Nadella’s career at Microsoft began in 1992.
    • He held various roles of increasing authority until he became CEO in 2014.
    • He continued to hold the CEO position until 2021 and then took on the role of Chairman and CEO from 2021 onwards.
  • Sundar Pichai’s Compensation Structure:
    • Sundar Pichai, CEO of Google’s parent company Alphabet, receives a base salary of $2 million annually.
    • The majority of his earnings come from multi-year performance-based compensation, including stock awards.
    • In 2019, Pichai received stock awards valued at over $276 million, vesting over time.
    • His compensation strategy is consistent, with stable base salary and varying performance-based incentives.
  • Andy Jassy’s Involvement at Amazon:
    • Andy Jassy, CEO of Amazon, has been with the company since its early days in 1997.
    • He holds 94,729 shares of Amazon, valued at approximately $9 million.
    • Jassy’s salary is $175,000, but his shares from early employment contribute significantly to his net worth.
  • Performance-Based Compensation for Tech Executives:
    • Major tech companies, including Microsoft, Alphabet (Google), and Amazon, rely heavily on performance-based compensation for their top executives.
    • The compensation packages of these executives are structured to reward them based on the company’s performance and achievement of set targets.
  • Executive Compensation Trends:
    • Tech industry leaders such as Nadella, Pichai, and Jassy receive substantial compensation through stock awards and performance incentives, reflecting the industry’s competitive nature.
    • While base salaries remain relatively stable, the bulk of their earnings are tied to the company’s performance and long-term success.

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