Mumbai: Microsoft CEO Satya Nadella’s total compensation for the financial year 2024-25 has risen to $96.5 million, his highest since taking charge of the company more than a decade ago. It’s 21.99 per cent higher than Nadella’s $79.1-mn package in FY2024. The sharp increase reflects Microsoft’s major progress in artificial intelligence (AI) under his leadership.

In a note to shareholders, the company’s board said Nadella and his leadership team have successfully positioned Microsoft as a global leader in AI during a “generational technology shift.”

The company’s regulatory filing shows that around 90 per cent of Nadella’s pay comes in the form of Microsoft shares, in addition to a $2.5 million base salary. In the previous financial year, Nadella earned $79.1 million. He became Microsoft’s third CEO in 2014, succeeding Steve Ballmer and co-founder Bill Gates.

The filing also revealed higher pay packages for Nadella’s top executives. Chief Financial Officer Amy Hood earned $29.5 million, while Judson Althoff, who now heads Microsoft’s commercial business, received $28.2 million.

Microsoft shares have gained about 23 per cent this year, driven by steady growth in its Azure cloud computing business, which continues to outperform competitors like Amazon Web Services. Since becoming CEO, Nadella has transformed Microsoft into a cloud-first and AI-driven company.

His early bet on cloud computing helped Azure become one of the top players in the global market. He also expanded Microsoft’s portfolio through key acquisitions, including LinkedIn, GitHub, and gaming giant Activision Blizzard, strengthening the company’s presence in software, professional networking, and entertainment.