Microsoft's CEO Satya Nadella received a significant 63% pay increase, bringing his earnings to $79.1 million (about £61 million) last year. This jump comes despite Nadella requesting a reduction in his cash incentive due to cybersecurity lapses, which ultimately shaved $5 million off his pay.

In 2024, Microsoft, like other major tech firms, reduced its workforce by thousands, including positions in its gaming division. However, Microsoft's board, in a filing with the U.S. financial regulator, cited strong financial growth, noting a 16% revenue increase for the fiscal year ending June 30, 2024. Nadella acknowledged this performance but requested a pay cut to reflect his accountability for several cybersecurity incidents, including a July 2023 breach affecting the email systems of around 25 organizations, including government agencies. Microsoft attributed this incident to China, which Chinese officials later denied.

In response, Microsoft’s compensation committee adjusted Nadella's cash pay to $5.2 million, a fraction of his total compensation, with $71.2 million coming from stock options. Luke Hildyard, director of the High Pay Centre, noted that while the compensation reflects Microsoft's strong results, there are broader questions about the necessity of such a high reward when considering fair distribution across the company's stakeholders.

Elsewhere in the tech world, Apple’s Tim Cook made $63.2 million in 2023, Nvidia's Jensen Huang earned $34.2 million in 2024, but they are dwarfed by Tesla’s Elon Musk, whose potential pay could reach up to $56 billion.

Ref: BBC News