Feeds

New Microsoft CEO Nadella could earn FOURTEEN TIMES what Ballmer banked in 2013

Being named Microsoft's CEO can be quite a windfall, it seems

Build a business case: developing custom apps

Newly minted Microsoft CEO Satya Nadella's salary nearly doubled on his first day in the corner office, giving him a pay package even larger than that of outgoing CEO Steve Ballmer.

Nadella will earn an even $1.2m in his first year on the job, according to documents filed with the US Securities and Exchange Commission on Tuesday.

That's a 78 per cent hike from the $675,000 he was paid as president of Microsoft's Server and Tools division, as reported in the company's most recent proxy statement.

It's also a better deal than Ballmer was getting at the end of his reign. Redmond's famous chair-chucker was paid $1.26m in fiscal 2013, but that included both his base salary of $697,500 and a cash bonus of $550,000. (He could have earned a bigger bonus, but the board in its wisdom deemed 79 per cent of the max to be sufficient.)

Nadella will also earn a bonus on top of his salary, but his could be as much as triple his base pay, or up to $3.6m.

In addition, Microsoft will give Nadella a stock award worth $13.2m during his first fiscal year. Ballmer, on the other hand, consistently declined to receive any stock awards – though, to be fair, he does own around $12bn worth of the company already.

Adding up the figures, Nadella's total compensation for his first year as CEO could be as much as $18m – more than double the $7.67m total package he received in fiscal year 2013, and more than 14 times what Ballmer earned that year.

All in all, not a bad day's work for a 46-year-old immigrant from Hyderabad, India.

Just how much of that $18m Nadella actually sees, however, will depend on a lot of factors, not least of which whether he can satisfy Microsoft's board of directors that he is following through on Ballmer's vision of Microsoft as a "devices and services" company.

Despite Nadella receiving glowing endorsements from Ballmer and Microsoft founder Bill Gates – the latter of whom will be stepping down as chairman of the board to assist Nadella in his new role – investors' reaction to the transition seemed mixed, and Microsoft shares closed down slightly. ®

Build a business case: developing custom apps

More from The Register

next story
iPad? More like iFAD: We reveal why Apple fell into IBM's arms
But never fear fanbois, you're still lapping up iPhones, Macs
Sonos AXES support for Apple's iOS4 and 5
Want to use your iThing? You can't - it's too old
Amazon says Hachette should lower ebook prices, pay authors more
Oh yeah ... and a 30% cut for Amazon to seal the deal
Philip K Dick 'Nazi alternate reality' story to be made into TV series
Amazon Studios, Ridley Scott firm to produce The Man in the High Castle
Joe Average isn't worth $10 a year to Mark Zuckerberg
The Social Network deflates the PC resurgence with mobile-only usage prediction
Chips are down at Broadcom: Thousands of workers laid off
Cellphone baseband device biz shuttered
Feel free to BONK on the TUBE, says Transport for London
Plus: Almost NOBODY uses pay-by-bonk on buses - Visa
Nintend-OH NO! Sorry, Mario – your profits are in another castle
Red-hatted mascot, red-colored logo, red-stained finance books
Twitch rich as Google flicks $1bn hitch switch, claims snitch
Gameplay streaming biz and search king refuse to deny fresh gobble rumors
Stick a 4K in them: Super high-res TVs are DONE
4,000 pixels is niche now... Don't say we didn't warn you
prev story

Whitepapers

Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
Why and how to choose the right cloud vendor
The benefits of cloud-based storage in your processes. Eliminate onsite, disk-based backup and archiving in favor of cloud-based data protection.
The Essential Guide to IT Transformation
ServiceNow discusses three IT transformations that can help CIO's automate IT services to transform IT and the enterprise.
Maximize storage efficiency across the enterprise
The HP StoreOnce backup solution offers highly flexible, centrally managed, and highly efficient data protection for any enterprise.