Inside Microsoft CEO Nadella's $84.3 million compensation package

Microsoft CEO Satya Nadella's total compensation package worth $84.3 million, according to Microsoft's latest proxy statement. Here's the breakdown of what's included.
Written by Mary Jo Foley, Senior Contributing Editor

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Nadella's base salary for fiscal 2014 was $918,917, but other various cash and stock awards resulted in a total payout of $11.6 million for the year.

Microsoft disclosed the compensation packages for Nadella and a number of its other top executives in its proxy statement filing filed with the U.S. Securities and Exchange Commission on October 20.

Microsoft Chief Operating Officer Kevin Turner remained the highest paid Microsoft exec in 2014, with his total compensation package coming in at $12.6 million, according to the filing.

As GeekWire noted, Nadella's cash bonus of $3.6 million for the year was 141 percent of his target award. The board based the award based on his performance against his priorities and the financial and operational performance of the company.

Former CEO Steve Ballmer received only 79 percent of his target award in fiscal 2013. Ballmer was docked over poor Windows 8 and Surface RT launches.

The regulatory filing also disclosed that Nadella's total compensation package is worth $84.3 million. That total includes Stock awards of $79.7 million — $59.2 million of which he received in connection with his promotion to CEO, but which he cannot receive in any part until 2019. Included in that amount is a one-time retention stock award worth $13.5 million.

The timing of the disclosure of Nadella's pay package comes at an inconvenient time for the company, given the CEO's recent gaffe regarding women's pay in the tech industry. Nadella has apologized internally and externally several times for his remarks.

Microsoft's annual shareholders meeting is scheduled for December 3 in Bellevue, Wash. The company will report its first quarter fiscal 2015 earnings this Thursday, October 23.

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