Microsoft CEO Nadella's 2025 Pay Hits Record $96.5M Amid Stock Surge, 15,000 Layoffs

Microsoft CEO Satya Nadella's total compensation for fiscal year 2025 reached a record $96.5 million, marking a 22% increase from the previous year largely due to the company's strong stock performance and advancements in artificial intelligence. The majority of his pay, about $84 million, came from stock awards, with an additional $9.56 million in cash bonuses, while his base salary remained steady at $2.5 million. This compensation surge coincides with Microsoft's stock rising over 23% in 2025 and the company's market capitalization exceeding $1 trillion, driven by growth in AI and cloud computing sectors. Despite the company's financial success, Microsoft laid off nearly 15,000 employees in 2025 as part of a strategic shift toward high-growth areas and operational streamlining. The median employee compensation also increased to about $201,000, but the pay gap between Nadella and the average worker widened to 480-to-1. Microsoft's board credited Nadella's leadership in positioning the company as a clear leader in AI, which has been instrumental in the company's strong financial results.