Microsoft recently appointed it’s Hyderabad born Cloud Computing head Satya Nadella as the Chief Executive Officer of the billion dollar company.
Unlike CEOs of Indian companies where everything is hush-hush, US law requires companies to make their employee compensation public.
Nadella’s basic annual salary is now $1.2million (about Rs. 7.5 crore), payable semi-monthly, according to a US SEC (Securities and Exchange Commission) filing.
That’s measly compared to the compensation and stock share Nadella will receive, which ZDNet has dug up. Nadella can expect upto $13.2m (a whopping Rs. 82 crore) worth of shares an year after fiscal 2015. Principally, Microsoft reserves the right to give him nothing, the final decision is in the hands of the board and will be made based on Nadella’s performance.
That’s not all. Nadella can earn a bonus of up to 300 percent of his annual basic salary per year. Doing the math that’s about $3.6m more a year.
If Microsoft performs good, i.e. is in the 90th percentile of company performances according to Standard and Poor’s index, Nadella will get 900,000 shares. If the company, say, lands up amongst the 70th percentile, Nadella get 750,000 shares.
Oh and by the way, Nadella’s offer letter compensates him with $50,000 for the inconvenience bestowed upon him while ‘negotiating the terms of his new role.’
Wonder whether Nadella will still be able to afford the Xbox One.
