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Microsoft (NASDAQ:MSFT) CEO Satya Nadella‘s annual pay surged by 22% to a record $96.5 million for fiscal 2025, as the software giant’s shares surged on the back of artificial intelligence (AI) advancements. Highest Pay Since Taking The Helm As CEO Details of Nadella’s pay, which is the highest since he became CEO over a decade ago, were announced in a regulatory filing on Tuesday. More than $84 million of it is in stock awards, and over $9.5 million in cash bonuses. The pay package is heavily tied to Microsoft's share performance, which has risen by over 23% year-to-date—outpacing the S&P 500's nearly 15% gain in the same period. The company’s shares have more than doubled in value over the past three years, largely due to the growth in Microsoft Azure business, which is meeting the increasing demand for cloud infrastructure from companies to support AI. Nadella Shifts To AI-Led Strategy In July, the company reported better-than-expected quarterly earnings and revenue, with sales climbing 18%, the fastest growth in over three years. Microsoft is set to announce its next earnings on Oct. 29. Bank of America Securities analyst Brad Sills says that the company will continue to expand AI infrastructure through a strategic and measured approach — prioritizing both scalable growth and energy self-reliance. Earlier this month, the newly appointed Microsoft commercial business chief, Judson Althoff, said Nadella could now return to “founder mode,” focusing on the future of AI, including architectures, platforms, strategy, and how AI will shape the broader direction of the industry. See Also: Bitcoin Surges Back To $112,000 As Ethereum, XRP, Dogecoin Rally On Fed’s Crypto Payment Signals Internal Unrest Amid Layoffs Despite Microsoft’s robust financial and stock performance, the company has witnessed internal unrest. In April, the company dismissed several activist employees who protested against Microsoft's partnership with the Israeli military. The company has also faced criticism, with Vice President JD Vance questioning the ethical and economic justification of the company’s mass layoffs while simultaneously increasing applications for employment-based visas. According to Benzinga Edge Stock Rankings, Microsoft has a growth score of 97.87% and a momentum rating of 76.55%. Click here to see how it compares to other leading tech companies. READ NEXT: Microsoft, Google, and Amazon Reportedly Move Production Out Of China As Tensions Rise Image via Shutterstock
