- Microsoft adjusted CEO Satya Nadella's compensation so that half of his pay is dependent on hitting certain goals, like growing the company's cloud business and Teams chat app.
- That's an increase from the previous fiscal year, when performance stock awards accounted for 36% of Nadella's pay
- The change is significant as Microsoft shifts the priorities that determine performance stock awards for executives, notably making Teams growth a more substantial goal.
- A re you a Microsoft employee? Contact this reporter via the encrypted messaging app Signal (+1-425-344- 8242) or email (astewart@businessinsider.com).
- Visit Business Insider's homepage for more stories .
Microsoft has adjusted Satya Nadella's compensation to base more of the CEO's pay on whether the company achieves certain goals, like growing its cloud business and Teams chat app, according to the company's annual securities filing released this week.
Now, half of Nadella's compensation will be made up of performance stock awards, which the company's board awards based on whether the company meets certain performance metrics. That's an increase from the previous fiscal year, when performance stock awards accounted for 36% of Nadella's pay.
The change is significant as Microsoft shifts the priorities that determine performance stock awards for executives . The awards are based on metrics such as growing cloud revenue and subscribers, Teams monthly active usage, Xbox Game Pass subscribers , Surface hardware revenue, and LinkedIn user sign-ins.
Microsoft this year has also adjusted the weight for each of those metrics to make Teams a bigger priority, which RBC Capital Markets analyst Alex Zukin signals "the focus on the product at the highest levels of the company."
Nadella made more than $44.3 million in total compensation during the company's last fiscal year, up a little more than 3% from around $42.9 million in the previous year.
The compensation committee, which decides Nadella's pay, praised his leadership amid the pandemic.
"Under Mr. Nadella's leadership, Microsoft acted early to enable secure, remote work and adopt other measures to protect the health and well-being of our workforce, while ensuring the continuity of our operations for the many organizations that rely on Microsoft products and services to serve their customers or citizens," the filing states .
Got a tip? Contact reporter Ashley Stewart via encrypted messaging app Signal (+1-425-344-8242) or email (astewart@businessinsider.com).
Via PakApNews