Microsoft CEO Satya Nadella will get a pay package worth $84.3 million, most of it in the form of long-term stock awards.
But Nadella’s actual compensation for the company’s fiscal year 2014 is worth $11.6 million.
A regulatory document filed by the software vendor on Monday shows Nadella, who is born in India, got a salary of $918,917 and a $3.6 million bonus for the fiscal year that ended June 30. This apart, he also was given stock awards worth nearly $79.8 million but most of the payments will be made over several years.
AP reported that Microsoft said Nadella’s actual compensation for the company’s fiscal year 2014 is worth $11.6 million after excluding the long-term stock awards and a $13.5 million one-time retention award he received before his promotion to CEO.
Microsoft appointed Nadella as the CEO in February. He is only the third chief executive in the company’s long history.
The Redmond, Washington-based company said in the regulatory filing that it had to change its pay structure because its former CEOs, Bill Gates and Steve Ballmer, were not given stock awards. That was because they were already among Microsoft’s largest shareholders.
Nadella’s pay package includes a long-term performance-based stock award valued at $59.2 million. Nadella won’t receive any of that until 2019 and it will depend on the performance Microsoft’s stock relative to other companies in the Standard & Poor’s 500 index.