Despite the layoffs and data security incidents, Microsoft CEO Satya Nadella received a whopping 63% increase in his compensation compared to the previous year.
According to company documents, about 90% of his compensation for the year ending in June was in Microsoft shares — $79.1 million. The amount could have been higher by $5 million if not for the CEO’s personal request for a pay cut due to «personal responsibility» for the changes caused by the company’s cybersecurity problems.
In March of this year, the US government’s Cybersecurity Analysis Council found that Microsoft’s security practices were inadequate compared to other cloud providers. The government organization’s report criticized Microsoft’s response to the hacking by Chinese hackers. The intrusion led to the disclosure of email accounts of 25 organizations, including several government agencies.
Microsoft President Brad Smith pleaded guilty to the US Congress: «We recognize that we can and should have done better, and we apologize and express our deepest apologies to those affected». Microsoft also admitted that it was hacked by the Russian state group Midnight Blizzard in November 2023, with access to many Microsoft corporate email accounts.
This year, the company has also made two large-scale layoffs: in January, the following employees lost their jobs 1900 jobs at Activision Blizzard and Xbox, and last month dismissed another 650 employees. Microsoft also shut down four game studios — Arkane Austin, Tango Gameworks, Alpha Dog Games, and Roundhouse Games in May this year.
So, it seems that the year has been tumultuous and hardly successful. However, Satya Nadella is not the only high-ranking Microsoft employee who received more this year. Chief Financial Officer Amy Goode’s compensation increased by 30% to $25.8 million, and President Brad Smith received a 29% increase to $23.4 million.
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