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Repair Windows errors before they cause bigger problemsFix Now →Fix the driver behind crashes, sound loss and screen glitchesFind Drivers →Microsoft reported Satya Nadella’s total compensation for fiscal 2024 as $79,106,183. The “cut in half” applied to his $5.2 million cash incentive—not to that total. The company’s proxy statement says the board reduced the incentive by more than 50% from the amount indicated by its assessment of strong financial and operational performance, after Nadella asked for a reduction in light of cybersecurity concerns and his accountability as CEO.
What Microsoft reported for FY2024
Microsoft’s 2025 proxy statement lists Nadella’s compensation for the fiscal year ended June 30, 2024. The reported total was $79,106,183, divided among four categories:
| FY2024 compensation category | Reported amount |
|---|---|
| Salary | $2,500,000 |
| Stock awards | $71,236,392 |
| Non-equity incentive compensation | $5,200,000 |
| Other compensation | $169,791 |
| Total | $79,106,183 |
These are the figures in the Microsoft 2025 proxy statement. “Non-equity incentive compensation” is the filing’s label for the cash incentive commonly described as a bonus.
What was cut—and what was not
The reduction concerned the cash incentive, not Nadella’s total compensation. In a letter included in Microsoft’s proxy statement, the Compensation Committee said the board approved a $5.2 million FY2024 cash incentive, “which represents a more than 50% reduction compared to what he would have been awarded based on the combined assessment of strong financial and operational performance.” GeekWire reproduced the statement in its October 24, 2024 report on Nadella’s compensation.
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The committee said Nadella agreed Microsoft’s performance was extremely strong but asked the board to depart from established performance metrics and reduce his cash incentive. It described his request as reflecting his personal accountability for the “focus and speed” required to respond to the cybersecurity threat landscape. The stated rationale was therefore a reduction to the incentive award, not a finding that the entire pay package—or the company’s performance—had been cut in half.
Why the $79 million total is not a cash-pay figure
Stock awards accounted for $71,236,392 of the reported total, making equity the largest component by far. That figure is the compensation value reported in the proxy; it should not be read as cash Nadella received by selling shares. The filing’s total combines different forms of compensation, so calling the full $79.1 million “cash pay” would be misleading.
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Keep the stock-market reference in its time period
GeekWire reported on October 24, 2024, that Microsoft shares had risen 28% over the prior year, attributing much of the increase to investor optimism about AI. That is a dated market observation from the article, not a current return figure. It also does not establish that security concerns caused a particular change in Microsoft’s share price or business results.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.FY2024 is distinct from the following year
The $79,106,183 figure is for FY2024, which ended June 30, 2024. Microsoft’s same proxy table separately reports Nadella’s FY2025 total compensation as $96,496,790. The later figure belongs to a different fiscal year; it should not be substituted for FY2024 or treated as the amount involved in the FY2024 cash-incentive decision.
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- Work at the speed of your ideas – Built with the latest Qualcomm Snapdragon X2 Elite (12 Core) processors, Surface Laptop delivers fast, AI‑accelerated performance—making it the most powerful Surface laptop for everything from multitasking to demanding workloads.
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- A 13.8" TOUCHSCREEN YOU'LL ACTUALLY USE — Sharp colors, real detail, smooth 120Hz scrolling on the PixelSense touchscreen[1] with LCD display[2]. Tap, scroll, or pinch to zoom - whichever feels right for streaming, editing photos, or daily work.
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