Microsoft CEO Satya Nadella Hits $25.8M In Total Pay

Strong financial growth and leadership in key areas at Microsoft led CEO Satya Nadella to receive an increase to his compensation package of 29 percent in fiscal year 2018.

Nadella received total compensation of $25.8 million in fiscal 2018, which ended June 30, according to a proxy filing Tuesday with the U.S. Securities and Exchange Commission.

[Related: Satya Nadella's 5 Boldest Statements At Microsoft Ignite 2018]

That's compared to pay of $20 million during the previous fiscal year, and $17.7 million in compensation during fiscal 2016.

The increase in CEO pay came during a year that saw Microsoft revenue surge to $110.36 billion, up 14.2 percent from $96.57 billion during fiscal 2017.

Nadella's pay was based upon both quantitative and qualitative performance, according to Microsoft's proxy filing. Under his leadership, Microsoft "has seen strong execution of our vision for the intelligent cloud and the intelligent edge in a highly competitive market," the filing says.

The proxy filing also mentions highlights such as the introduction of the bundled Microsoft 365 offering, Azure product expansions such as the hybrid cloud service Azure Stack, cybersecurity enhancements and the company's gaming strategy.

Additionally, "Mr. Nadella’s strategy for LinkedIn integration has been successful, taking advantage of synergies while maintaining LinkedIn’s operating independence," the filing says. "The Company’s strategic acquisition of GitHub, pending regulatory approval, represents an important new way to serve developers and contribute to long-term sustainable growth."

Nadella's compensation for fiscal 2018 included a base salary of $1.5 million and stock awards of $16.8 million.

He received a cash incentive of $7.4 million for meeting or exceeding all performance targets, Microsoft said in its proxy filing.

Ric Opal, vice president at Oak Brook, Ill.-based SWC Technology, told CRN that "all the gears of the machine are spinning in a proper cadence" at Microsoft right now.

Among Nadella's most important moves over the years have been the changes to the culture at Microsoft, he said. "That changing of the culture was the complete catalyst to everything that's been going on," Opal said.

Nadella has also "demonstrated a willingness to partner," according to Opal, which has helped drive the company's growth with the channel.

It's also critical that the leadership team overall at Microsoft is extremely strong, he said.

"I don't see it being the Satya Nadella show. I see it being the Microsoft show," Opal said.

With rising interest rates and other possible economic impacts ahead, Opal believes the leadership at Microsoft is poised to "proceed through just about anything."

"Now, as our economy changes, do they perform at the same caliber and rate? I think the answer to that question is yes," he said.