Satya Nadella’s Salary Jumps 22% As Microsoft Shares Soar, This Is His Current Salary

Satya Nadella’s 22% pay hike is driven by Microsoft’s soaring share price and industry-leading position in the generational shift to Artificial Intelligence. This is how the tech titan’s massive package is structured.

October 22, 2025: Microsoft CEO Satya Nadella has secured a record-breaking compensation package for the fiscal year 2025, with his total earnings soaring to $96.5 million (approximately Rs 8,415 crore). According to a recent proxy filing released by the company, this figure represents a sharp 22% increase from his $79.1 million (Rs 6,880 crore) package in the previous financial year, positioning him as one of the highest-paid CEOs in the global tech industry.

The monumental pay rise is overwhelmingly attributed to the exceptional performance of Microsoft’s stock, fueled by its strategic dominance in the artificial intelligence (AI) revolution.

Performance-Linked Windfall

The breakdown of Nadella’s compensation reveals that his fortune is deeply tied to the company’s market success.

• Stock Awards: Nearly 90% of his compensation, a massive $84 million (Rs 7,310 crore), was granted in the form of performance-based company stock.
• Cash Bonus: He also received a cash bonus of $9.5 million (Rs 826 crore).
• Previous Year: In fiscal year 2024, Nadella’s total earnings were $79.1 million, a substantial jump from the $48.5 million (Rs 4,220 crore) he earned in fiscal year 2023.

The pay increase is a direct reflection of investor confidence in Microsoft. In the 2025 calendar year so far, Microsoft’s shares have climbed about 23%, significantly outperforming the S&P 500 index’s return of around 15% in the same period. Over the past three years, the company’s market value has more than doubled, solidifying its position as an AI powerhouse.

Executive Team Also Rewarded

Nadella was not the only top executive to benefit from the company’s stellar growth. The filings show that other key leaders also received significant packages:

• Amy Hood (Chief Financial Officer): Earned $29.5 million (Rs 2,566 crore).
• Judson Althoff (Chief Commercial Officer): Received $28.2 million (Rs 2,453 crore).

AI and Cloud Drive Record Growth

Analysts agree that Microsoft’s aggressive push into AI, particularly through its partnership with OpenAI and the rapid expansion of its cloud computing platform, Microsoft Azure, is the core engine behind its financial success. The company’s integration of AI-powered tools like Copilot across its product portfolio has driven a surge in enterprise demand.

In the company’s Q4 report announced in July, Microsoft reported an 18% increase in revenue year-on-year, marking its fastest growth in over three years. Investors and analysts are now closely watching the upcoming fiscal year 2026 first-quarter results, scheduled for release next week, with Azure’s continued performance expected to be a key indicator of future growth.