Microsoft CEO Makes 480 Times As Much As The Median Company Worker, A Growing Gap
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Eddie Makuch
2025-10-23
Satya Nadella's total pay for the latest fiscal year has been revealed, and the gap between his pay and what the median worker makes is growing.
Microsoft CEO Satya Nadella's total pay package for fiscal 2025 has been confirmed, and the executive earned a total of $96.5 million for the year. That is up 22% from the previous year and represents his highest-ever annual pay. It's a massive multiple over what the median Microsoft worker makes, with the median worker taking home around $200,000.
The executive's pay details are coming to light as the company faces scrutiny over its recent Xbox decisions, including layoffs, game cancellations, studio closures, price hikes, and increasing profit-margin mandates. The company as a whole has faced ongoing criticism as well due to its slate of mass layoffs, partnership with Israel, and investments in AI, among other things.
Nadella is paid a $2.5 million salary, a figure that's been the same since 2019. The majority of his pay for fiscal 2025 came from stock awards, making up $84.2 million (87%) of his total pay. Microsoft revealed all of this as part of a regulatory filing disclosed this week, as reported by The Seattle Times.
Nadella also makes money from an annual cash bonus--for this latest fiscal year, Nadella got paid a bonus of $9.56 million. The bonus he got last year--$5.2 million--was millions less than this year. That's because he requested a lower cash bonus for 2024 due in part to cyberattacks against Microsoft.
The median pay for a Microsoft employee, excluding Nadella's pay, rose in fiscal 2025 to $200,972, up from $193,744. At the same time, the delta between Nadella's pay and the median Microsoft salary is growing, reaching 480-to-1 for fiscal 2025--that's up from 250-to-1 in 2023.
The regulatory filing revealing Nadella's latest pay included a memo from Microsoft's board of directors saying the CEO's efforts to push on artificial intelligence helped Microsoft's fortunes overall in the latest fiscal year. "His leadership team have positioned Microsoft as a clear artificial intelligence leader for this generational technology shift," the board said.
Microsoft reached a $4 trillion market cap this year and the company's stock also reached an all-time high of more than $535 earlier this year. Microsoft is the No. 2 most valuable company in the world right now, only trailing Nvidia.
Nadella became CEO of Microsoft in 2014, taking over for Steve Ballmer. He is just the third CEO of Microsoft, following Bill Gates and Ballmer. Since Nadella took over as CEO, Microsoft's stock price has risen from about $36 in 2014 to more than $520 today, an increase of more than 1,300%.
Recently, Microsoft made headlines again over a report that said CFO Amy Hood has implemented a new profit-margin mandate for Xbox of 30%, which is well above industry standards. Many have theorized that this reported mandate has contributed to some of the decisions Microsoft has made in recent times, including bringing its first-party games to rival platforms, raising prices on consoles and Game Pass, investing in automation technologies with AI, canceling games, closing studios, and laying off workers.
Sources told Bloomberg that Microsoft will look to focus on producing titles that are "cheap to make" or more likely to generate revenue as opposed to "riskier bets."
Microsoft will publish its next earnings report on October 29, at which time the company's financial fortunes for the latest quarter will be revealed.
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