Satya Nadella, the CEO of tech giant Microsoft, saw his compensation increase by 63% to $73 million for 2024 despite the company laying off over 2500 employees through two rounds of job cuts. This large pay increase for the Microsoft chief has drawn criticism from some, considering the difficult situation many workers face.
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Layoffs at Microsoft in 2024
In 2024 alone, Microsoft implemented two major rounds of job cuts that impacted over 2500 employees. In January 2024, around 1900 roles were eliminated globally across different divisions of the company. Then, in September 2024, another 650 employees working in the Xbox gaming division lost their jobs.
Microsoft CEO Satya Nadella’s Growing Pay Package
Despite these layoffs that had a devastating impact on many workers and their families, Microsoft announced that CEO Satya Nadella’s total compensation grew significantly. His pay for 2024 consisted of $69.9 million in stock awards, $3 million in salary, and nearly $179,000 in other compensation. This is a 63% jump from his 2023 pay.
Microsoft’s Financial Performance
The company defended Nadella’s pay hike, citing its strong financial results. Microsoft’s revenue grew 14% to $212 billion for fiscal 2024, and its net income increased by 2% to $72.7 billion. Its market value also crossed the $3 trillion mark. Microsoft attributed this success to its focus on cloud computing and artificial intelligence.
Mixed Reactions to Microsoft CEO Pay Rise
Critics argue that such a massive pay raise for the CEO is unjustified when Microsoft fired thousands of employees in the same period. However, supporters say Nadella deserves compensation given that his long-term strategy has transformed Microsoft into a $3 trillion company. Overall, there are mixed views on whether the CEO’s pay appropriately reflects the company’s performance and treatment of its workforce.
Concluding Remarks
Microsoft CEO Satya Nadella’s large pay increase in 2024 following the layoff of over 2500 employees was understandably controversial. Both the financial merits and insensitivity to job losses can reasonably be argued. A more moderate raise may have a balanced appreciation of company success and worker impacts more appropriately. The situation highlights the ongoing debate around outsized executive pay, especially during workforce restructuring periods.
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