As Microsoft cut staff and closed its game studios, CEO Satya Nadella's compensation increased 63% year-on-year to over 12 billion yen

Despite Microsoft laying off 2,550 employees and closing multiple game studios in 2024, CEO Satya Nadella's compensation is set to increase 63% year-on-year to $79.1 million (about 12 billion yen).

Microsoft CEO's pay rises 63% to $73m, despite devastating year for layoffs | Eurogamer.net
https://www.eurogamer.net/microsoft-ceos-pay-rises-63-to-73m-despite-devastating-year-for-layoffs

Microsoft CEO Satya Nadella's Compensation Grows To $79.1 Mn
https://businessworld.in/article/microsoft-ceo-satya-nadellas-compensation-grows-to-791-mn-537264

Microsoft has implemented three large-scale workforce cuts since the beginning of 2024. At the end of January, it laid off 1,900 employees from game maker Activision Blizzard, which it completed its acquisition of in October 2023 , its game brand Xbox, and ZeniMax Media, which it acquired in 2021. This is equivalent to about 8% of Microsoft's entire gaming division.

Microsoft lays off 1,900 Activision Blizzard and Xbox employees - GIGAZINE

In June, it was reported that the company had cut around 1,000 jobs in its cloud computing service Microsoft Azure and in the division developing the mixed reality headset HoloLens 2.

Microsoft fires about 1,000 employees for Azure, HoloLens, etc. - GIGAZINE

Additionally, in September, the company laid off 650 employees from its Xbox gaming division.

Microsoft lays off about 650 employees working in the gaming division - GIGAZINE

In May, Microsoft also decided to close three game studios owned by its subsidiary Bethesda Softworks: Arkane Austin, Tango Gameworks, and Alpha Dog. After announcing the closure, Tango Gameworks was taken over by Krafton, the publisher of PUBG.

Microsoft decides to close several game studios under Bethesda Softworks, including those behind 'Redfall,' 'The Evil Within,' and 'Ghostwire: Tokyo' - GIGAZINE

Meanwhile, documents submitted by Microsoft to the U.S. Securities and Exchange Commission (SEC) revealed that CEO Nadella will receive a total of $79.1 million in compensation in fiscal year 2024 (July 2023 to June 2024). CEO Nadella received a total of $48.5 million in compensation in fiscal year 2023, so his compensation has increased by 63%. Stock compensation in particular has increased, from $39 million (approximately 5.9 billion yen) in the previous fiscal year to $71 million (approximately 10.8 billion yen) this year.

According to a report by BW Businessworld , an Indian economic media outlet, Nadella had requested a salary cut as an unusual measure following the security incident that occurred in 2024. However, Microsoft itself has been performing well thanks to its strong performance in the AI field, and its stock price rose by about 31.2% in fiscal 2024.

According to documents filed by Microsoft with the SEC, CEO Nadella was scheduled to receive $50 million (approximately 7.6 billion yen) in performance-based stock compensation in fiscal year 2024. Microsoft's board of directors stated that 'this stock compensation is appropriate' given CEO Nadella's exceptional leadership and the scale and complexity of Microsoft's business.

In addition, in Microsoft's 2024 Annual Report released on October 24, CEO Nadella said, 'We are bringing great games to more people and more devices. The acquisition of Activision Blizzard King, completed in October 2023, added hundreds of millions of players to our ecosystem. We currently have 20 franchises with lifetime revenues exceeding $1 billion (approximately 150 billion yen), from Candy Crush, Diablo, and Halo to Warcraft, Elder Scrolls, and Gears of War. Xbox Cloud Gaming continues to innovate to give players more ways to experience their favorite games wherever, whenever, and however they want. Finally, we have succeeded in offering four popular titles for fans on Nintendo Switch and PlayStation for the first time,' he wrote, appealing to the fact that the gaming division continues to grow steadily.