Subj : Microsoft CEO Satya Nadella gets a major pay rise - but will its To : All From : TechnologyDaily Date : Sun Oct 26 2025 19:30:08 Microsoft CEO Satya Nadella gets a major pay rise - but will its increasing AI focus be enough to continue to pay the bills? Date: Sun, 26 Oct 2025 19:23:00 +0000 Description: Microsofts soaring AI revenues boost executive rewards, exposing sharp inequality and uncertainty about whether such growth can truly last. FULL STORY ======================================================================Microsof ts wealth creation increasingly favors shareholders over its shrinking workforce AI investments drive record revenue even as job security declines across divisions Microsofts success now rests heavily on the uncertain economics of artificial intelligence Microsoft has confirmed CEO Satya Nadella will receive total compensation worth $96.5 million for fiscal year 2025, marking a 22% rise from the previous year. The package includes a $2.5 million base salary and $84 million in stock awards, with most of his pay tied to performance rather than tenure. The company explained Nadellas equity compensation is delivered exclusively through performance stock awards tied to long-term value creation and not time-based rewards. AI growth meets financial pressure Microsoft says this structure is meant to encourage his continued leadership and drive sustained business growth and shareholder value. The board justified the increase by pointing to Microsofts strong financial performance under his tenure, with revenue tripling and net income quadrupling since 2014. The companys results for the fiscal year ending June 30 2025 reflect this trajectory. Microsoft reported revenue of $281.7 billion and a net profit of $101.8 billion, with its cloud storage and AI businesses leading the surge. Azure revenue surpassed $75 billion, climbing 34% year on year, while the company said it now operates 70 operating regions and over 400 data centers worldwide. Microsoft also claims 430 million M365 Commercial paid seats, 89 million M365 consumer subscribers, and 1.2 billion LinkedIn members. Yet, behind these figures lies a growing question: can the companys expanding focus on AI tools continue to fund its enormous compensation packages? The contrast between Nadellas soaring pay and Microsofts internal cost-cutting is difficult to ignore. Just months before the pay announcement, the company eliminated up to 9,000 jobs , leaving remaining employees with a median annual salary of $200,972. Microsoft disclosed that for 2025, the ratio of the annual total compensation of our CEO to the annual total compensation of the median employee was 480 to 1. Despite record profits, such disparity may fuel skepticism about whether the firms AI-driven strategy is truly benefiting its broader workforce. Microsoft continues to invest heavily in artificial intelligence, with 230,000 organizations reportedly using Copilot Studio and 14,000 customers linked to its Azure AI Foundry service. However, the company has not confirmed how many of those customers are paying, leaving analysts uncertain about the long-term return on these ventures. Follow TechRadar on Google News and add us as a preferred source to get our expert news, reviews, and opinion in your feeds. Make sure to click the Follow button! And of course you can also follow TechRadar on TikTok for news, reviews, unboxings in video form, and get regular updates from us on WhatsApp too. ====================================================================== Link to news story: https://www.techradar.com/pro/microsoft-ceo-satya-nadella-gets-a-major-pay-ris e-but-will-its-increasing-ai-focus-be-enough-to-continue-to-pay-the-bills --- Mystic BBS v1.12 A49 (Linux/64) * Origin: tqwNet Technology News (1337:1/100) .