Microsoft (MSFT) CEO Satya Nadella is getting a major pay increase as the tech company’s stock continues to rise due to the growing demand for artificial intelligence. According to a proxy filing released on Tuesday, Nadella earned $96.5 million in total compensation for Fiscal 2025, up 22% from $79.1 million last year. Most of this came from over $84 million in stock awards, with another $9.5 million from cash bonuses.
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His pay is largely based on Microsoft’s stock performance, which has jumped 23% in 2025 so far and has outpaced the S&P 500’s 15% gain. Furthermore, over the last three years, the stock has more than doubled. Unsurprisingly, back in July, the company posted strong Q4 results with 18% revenue growth. This was the fastest growth in over three years, driven mainly by its Azure cloud business, as more companies invest in AI infrastructure.
However, even with strong financial results, Microsoft has faced internal challenges. For example, in 2024, Nadella’s pay had increased by 63%, but he asked for a smaller cash bonus after several cyberattacks hit the company. More recently, Microsoft laid off over 15,000 employees, and Nadella said that those cuts have “been weighing heavily” on him. The company also drew attention for firing employees who protested its work with the Israeli military.
Is MSFT Stock a Buy?
Turning to Wall Street, analysts have a Strong Buy consensus rating on MSFT stock based on 34 Buys assigned in the last three months. Furthermore, the average MSFT price target of $627.98 per share implies 20.6% upside potential.
