Satya Nadella to earn 70 per cent higher salary than Steve Ballmer

By Peter Gothard
06 Feb 2014 View Comments
Satya Nadella the new CEO of Microsoft in a meeting

Satya Nadella could earn around £3m in his first year as Microsoft CEO, with a base salary of $1.2m (£737,000) - about 70 per cent higher than Steve Ballmer's - and an incentive programme that could deliver a cash award of 300 per cent this figure in 2014 alone.

The figures have been taken from a recent regulatory filing Microsoft made with the US Securities and Exchange Commission.

Further reading

Nadella can also look forward to another incentivised 300 per cent bonus for 2015, as well as a stock award of $13.2m (£8m).

Long-term performance stock awards (LTPSAs) will also be on the table for Nadella after three five-year performance periods. These are linked to the S&P 500 stock market index.

To cap it all, the new CEO will be reimbursed up to $50,000 to cover any expenses that may been necessary while negotiating his new terms with Microsoft. This is presumably only the very best freshly-ground coffee and highest quality Bourbon biscuits for the conference table.

Steve Ballmer's annual salary was a measly $700,000 during his 14-year tenure as CEO. Still, if he's feeling undervalued, Ballmer can take solace in his $18bn personal fortune, which ranks him at number 21 in the Forbes 400 list of richest Americans.

In 2009 alone, Ballmer earned $1,276,627 in compensation packages.

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