Despite serious cybersecurity problems and staff cuts, Microsoft CEO Satya Nadella received a significant pay increase, although he requested a reduction due to the incidents.
Nadella's compensation
Microsoft CEO compensation increase
Microsoft CEO Satya Nadella received an impressive 63% increase in his compensation compared to last year, despite a number of problems facing the company. This happened against the background of mass layoffs and serious violations in the field of information security.
Compensation package structure
According to corporate reports, the majority of Nadella's annual compensation (about 90%) was paid in the form of Microsoft shares, which amounted to $79.1 million. It is interesting to note that this amount could have been even higher by $5 million if not for the personal initiative of the CEO to reduce your salary. Nadella explained this decision as "personal responsibility" for the consequences caused by the company's problems in the field of cybersecurity.
Criticism of Microsoft's security
In March of this year, the US Government Cybersecurity Review Board found that Microsoft's security measures were inferior similar to systems of other cloud providers. The government agency's report criticized Microsoft's handling of the Chinese hacker attack. As a result of this intrusion, the email accounts of 25 organizations, including several government agencies, were compromised.
Admitting mistakes and promising improvements
Brad Smith, president of Microsoft, speaking before the US Congress, admitted the company's shortcomings: "We We recognize the need and opportunity to improve our actions. We sincerely regret and offer our deepest apologies to all those affected." In addition, Microsoft confirmed that its systems were hacked by the Russian hacker group Midnight Blizzard in November 2023, which resulted in access to many of the company's corporate email accounts.
Glossary
- Microsoft is an American technology corporation, one of the largest software manufacturers
- Satya Nadella - CEO of Microsoft since 2014
- Brad Smith - President of Microsoft, responsible for legal and corporate affairs
- Midnight Blizzard - Russian hacker group believed to have ties to government agencies
- Cybersecurity Review Board - US government agency responsible for assessing threats to information security
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Discussion of the topic – Satya Nadella: $79 million for a year of mass layoffs at Microsoft
Microsoft CEO Satya Nadella received a record $79.1 million in compensation in a year marked by mass layoffs and security problems. 90% of the amount were company shares.
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Isabella
Wow, 63% salary increase? 🤑 And I’m sitting here and enjoying the 5% increase. Maybe I should also apply to Microsoft?
Hans
Isabella, don't rush! There are also a lot of security problems. Imagine how stressful it is to work in such a company now. Although... for that kind of money you can be patient 😅
Amelie
Guys, don't you think this could be a strategic move? Retain a key executive during difficult times. Although $79 million in shares is certainly impressive! 💰
Carlos
Amelie, I agree! But I’m more impressed that Nadella himself asked to cut his bonus by $5 million. This shows some kind of responsibility, don’t you think?
Giovanni
Ha! Cut your bonus by $5 million when the total is $79 million? It's like donating blood to a mosquito. It's all PR, guys. The company screwed up with security, and the boss is fattening. Typical corporate America! 🙄
Isabella
Giovanni, you are too cynical! Maybe this really is a gesture of goodwill. Either way, I wonder how this will affect Microsoft's reputation in the long run 🤔
Oleksandr
And I think now is the time for Microsoft to focus on cybersecurity. Maybe some of these millions should be invested in the development of protection against hackers? 🛡️
Amelie
Oleksandr, great idea! Maybe we should start a petition or something? Urge Microsoft to invest more in security rather than in executive salaries? 🖊️📃