Microsoft CEO Satya Nadella earned a total compensation of $42.9 million for fiscal year 2019, a 66 percent increase from the previous fiscal year, the company announced. He got a base pay increase of $1 million and stock raises.
“Nadella’s strategic leadership, including his efforts to strengthen trust with customers, drive for a company-wide culture change, successful entry and expansion into new technologies and markets,” Microsoft’s independent directors said in a proxy statement.
Nadella took home $84.3 million when he took over from Steve Ballmer in 2014, which are for him the biggest earnings so far in a fiscal year.
“For the fiscal year 2019, the annual total compensation for the median employee of the Company (other than our CEO) was $172,512”, the company said.
“The past fiscal year offered another record year for financial performance, and Microsoft delivered strong results for our shareholders, including a return of $30.9 billion in the form of share repurchases and dividends,” wrote the board of directors.
Microsoft’s market capitalization grew $509 billion (from $302 billion to $811 billion) over the first five-year growth period.
“Microsoft’s relative TSR was in the 97th percentile, resulting in Nadella earning and vesting in the maximum 900,000 shares,” the company said in the filing.
Last month’s board of directors of Microsoft authorized another $40 billion in share repurchases and increased its quarterly dividend by 5 cents or 11 percent to a share of 51 cents. Last year, the company bought back $19.54 billion in shares. The buybacks were worth $10.72 billion in the previous fiscal year-all under the leadership of Nadella.
“The new share repurchase program, which has no expiration date, may be terminated at any time. The dividend is payable on December 12 to shareholders of record on November 21, 2019. The ex-dividend date will be November 20, 2019,” the company said in a statement.
On December 4, Microsoft Corporation will hold its annual meeting of investors. Nadella, Amy Hood, Brad Smith, Chief Financial Officer, President, John W. Thompson, Microsoft’s independent board member and Chief Legal Officer will lead this year’s annual shareholders meeting.
Driven by growth in its segments of cloud and surface laptops, Microsoft reported $33.7 billion in sales and $13.2 billion in net revenue for its fourth quarter ended June 30.
For its entire fiscal year 2019, Microsoft reported revenue of $125.8 billion which increased 14 percent and $39.2 billion net income — setting a new record fiscal year for the company. Microsoft reported sales of $125.8 billion for its entire fiscal year 2019, which increased 14% and net income of $39.2 billion – setting a new record for the company’s fiscal year.
In the fourth quarter of the fiscal year 2019, Microsoft continues to be valued as a $1 trillion company, returned $7.7 billion to shareholders in the form of share repurchases and dividends.