Microsoft CEO Satya Nadella’s Pay Surge Amid Cybersecurity Challenges
Microsoft (MSFT) CEO Satya Nadella’s total compensation increased by 63% during the 2024 Fiscal Year. This significant rise reflects the company’s ongoing commitment to leadership, even as it navigates various cybersecurity challenges.
Nadella earned $79.1 million for the fiscal year ending June 30, up from $48.5 million the previous year, according to a proxy filing from Microsoft. The majority of his earnings came in stock. Notably, his cash compensation saw a drop of $5.46 million due to several cyber incidents affecting the company.
Earlier this year, Microsoft reported that Russian intelligence had accessed certain executive email accounts. Following that, the U.S. Department of Homeland Security revealed that Chinese hackers had breached U.S. government officials’ email accounts through Microsoft services.
Furthermore, in July, a massive IT outage tied to a technical update from cybersecurity firm CrowdStrike (CRWD) further complicated Microsoft’s situation.
Focusing on Cybersecurity
In light of these cyber threats, Nadella emphasized that security remains a primary focus at Microsoft. This summer, the company announced that it would take into account employees’ cybersecurity contributions when determining salaries.
Concerning Nadella’s pay, his expected cash compensation was $10.66 million. However, due to the cyber incidents of the year, Microsoft’s board approved only $5.2 million in cash. Despite these challenges, MSFT stock has appreciated 15% so far in 2024.
Analyst Outlook for MSFT Stock
The consensus among 29 Wall Street analysts is that Microsoft stock is a Strong Buy. This assessment is based on 26 Buy and three Hold recommendations from the past three months, with no Sell ratings issued. The average price target for MSFT is $503.27, suggesting a potential upside of 17.55% from current trading levels.
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