Like most CEOs, Microsoft chief executive Satya Nadella gets massive bonuses based on his performance.
So it reflects well on Nadella that he was awarded a $4,464,000 cash bonus for his performance in Microsoft’s most recent fiscal year, on top of his normal $1.2 million salary, per a new filing with the SEC. That’s 124% of his target compensation, meaning the board of directors thought Nadella exceeded expectations.
Nadella’s total compensation for the last fiscal year was $17,692,031, including stock and other bonuses. That’s actually lower than the $18.3 million he raked in last year.
For comparison, though, Microsoft CFO Amy Hood and President Brad Smith both crushed their performance reports, both hitting 140% of their compensation targets. Hood and Smith made $2,304,000 and $1,972,000 in bonuses, respectively, for $10,374,630 and $8,610,612 — both higher than in 2015.
What happened to Nadella’s missing 16%?
Combing through that SEC filing, it looks like Nadella’s decision to shut down most of the company’s Windows smartphone efforts had some ripples through the company.
From the proxy statement:
- Because of the “streamlining” of the phone business, Microsoft revenues for the period were $91.5 billion, “slightly below target.”
- Microsoft has delayed its ambitious goal of getting Windows 10 onto one billion devices, “in part because of the change in phone strategy.” Now, that milestone will be pushed “beyond fiscal year 2018,” when it was originally supposed to be complete.
- And while it doesn’t appear this necessarily reflected on his compensation, the Microsoft filing indicates that “the company’s percentage of females declined overall, largely due to workforce reductions in the phone business, while it increased slightly for females in technical fields.”
Otherwise, though, it sounds from the filing like Microsoft’s board of directors is pretty happy with Nadella and the company’s general direction.