Microsoft hands out $56m to five executives in 2016
For the 2016 fiscal year, Microsoft chief executive officer Satya Nadella took home a total salary of $17.7 million comprised of a $1.2 million base salary, a $4.5 million bonus, and $12 million in stock awards.
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According to Microsoft, Nadella's share aggregate grant was awarded by the board of directors in recognition of his performance and to acknowledge the "strategic clarity" he has created for Microsoft.
Similarly, former chief operating officer B Kevin Turner, who left his tenure at the tech giant in July this year, was handed a cash incentive award of $2.4 million and a $9.5 million stock award, leaving his annual salary just shy of $13 million.
In a Proxy Statement filed on Monday, the company also detailed that executive vice president and chief financial officer Amy E Hood had a $10.3 million package; Microsoft's president, chief legal officer, and chief compliance officer Bradford L Smith took $8.6 million; and executive vice president of Business Development Margaret L Johnson received $6.7 million.
Nadella earned more than $18 million in fiscal 2015, taking home 120 percent of his targeted annual cash award, valued at $4.3 million, that was calculated based on "performance against his core priorities and operational performance of Microsoft". The remainder was comprised of $1.2 million in salary and $12.8 million in stock.
In fiscal 2014, Nadella earned a $3.6 million bonus, a base salary of $919,000, and a stock award of $80 million, only part of which he was able to collect at the time. Nadella's cash bonus in 2014 was 141 percent of his targeted award.
Upon taking up the CEO promotion, Nadella was promised a $59.2 million long-term performance stock award compensation that he is not eligible to dip into until 2019, providing he continues to serve as CEO.
For the 2016 fiscal year, Microsoft reported net income of $16.8 billion, on revenue of $85.3 billion. Non-GAAP revenue, which reflects Windows 10 sales deferrals, was $92 billion with the tech giant's results helped by lower tax rates abroad.
Last month, Microsoft cut approximately 520 jobs, affecting mainly its London and Redmond, Washington offices. The latest round of cuts follow on from the announcement Microsoft made in July that it was planning on reducing its workforce by 2,850 jobs in the 2017 fiscal year, in addition to the 1,850 planned cuts announced two months prior.