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Saturday, February 8, 2014

Microsoft CEO Satya Nadella offered Rs 112 cr pay package

Microsoft CEO Satya Nadella offered Rs 112 cr pay package


Satya Nadella will get a base annual salary of USD 1.2 million as new CEO of Microsoft Corporation, but his overall package after taking into account bonus and stock awards may reach USD 18 million (Rs 112 crore) a year besides various other perks. 

As per his new employment agreement, the Indian-origin CEO of USD 78-billion software major will be paid his salary on "semi-monthly" basis at an annual rate of USD 1.2 million (Rs 7.5 crore).
46-year-old Nadella, who has been with Microsoft for 22 years, would also be eligible for a cash bonus, which can range from zero to 300 per cent, resulting into total payout of up to USD 3.6 million.
Besides, he would get stock awards to the tune of USD 13.2 million, taking the total package to USD 18 million.

Nadella's annual salary would be determined by the company's Executive Incentive Programme (EIP).
The top executive would be eligible for an annual EIP stock award worth USD 13.2 million starting 2015 fiscal year, according to Microsoft's offer letter to Nadella.

"For Microsoft's 2014 and 2015 fiscal years, your annual cash award target will be 300 per cent of your salary earned as CEO during the fiscal year.
"Your actual cash award can be from 0-300 per cent of the target and will be based on your performance as evaluated by the Board," the letter said, a copy of which has been submitted to the US market regulator SEC also.
Nadella, who became the third CEO of Microsoft after Bill Gates and Steve Ballmer, was paid an annual salary of USD 675,000 for the fiscal year 2013 as the President of the firm's server and tools business.
Going by reports, Nadella pocketed a cash bonus of USD 1.6 million last year.
Microsoft's fiscal year runs from July 1 to June 30.

Satyanarayana Chowdary Nadella Announced as Microsoft's New CEO


After a five-month search, Microsoft has named Satya Nadella its new CEO. He's the third CEO in the company's history.

Satya Nadella was born in 1967 in Hyderabad, Andhra Pradesh, India to Kamma parents B. N. Yugandhar (Father) and Prabavati Nadella (Mother). His father B. N. Yugandhar is an 1962 batch Indian Administrative Service officer (IAS) hails from the Bukkapuram village, Anantapur district, B. N. Yugandhar was a member of the Planning Commission during 2004-2009 under Prime Minister Manmohan Singh. He has also served as secretary to the prime minister, secretary, rural development, and as a director of the Lal Bahadur Shastri National Academy of Administration.
 BN Yugandhar

     Anupama                                                                                                         Family         
Satya Nadella's wife, Anupama V Nadella is a Brahmin, daughter of another retired IAS officer K.R. Venugopal, an architect of the Rs. 2 a kg rice scheme launched during the late NTR’s regime. She also attended Hyderabad Public School.

Satyanarayana Chowdary Nadella is the executive vice president in charge of Microsoft's cloud and enterprise group, a fast-growing and lucrative division of the company. He's been a Microsoft employee for over 20 years and has worked as a VP in the company's business and online services divisions.

It's not a big surprise Microsoft's board picked Nadella. Last week, several reports began trickling out that Microsoft had chosen him. The company's board reportedly made its final vote over the weekend, only taking a break to watch the Seattle Seahawks win the Super Bowl.

Microsoft began looking for a new CEO in August when Steve Ballmer announced he'd retire within a year or as soon as the board could find a replacement. Ballmer's decision to retire was a surprise, as he had previously said he didn't plan to do it until all his kids were in college, which wouldn't have been until 2017 at the earliest.

The board reportedly considered a few outside hires for the job, including Ford CEO Alan Mulally. It's likely that the board's decision to pick an internal candidate means it wants the company to continue its course. Right now, Microsoft is still struggling to catch up with the consumer shift to mobile computing devices like smartphones and tablets. Its newest operating system, Windows 8, is hybrid software designed to work on regular desktop or laptop computers plus touchscreen devices like tablets. But Windows 8 got a lukewarm reception, and Microsoft is now working on updates to make it easier to use on traditional computers. Meanwhile, Microsoft's other businesses like Office and Xbox are doing pretty well.

If Microsoft's board had landed on an outside hire, that would've been a sign that the company wanted to change its direction and possible focus on the growing parts of its business like enterprise software.
No wonder his Total Calculated Annual Compensation as on date is  $7,668,952 = Rs.47,94,62,879

40 comments:

Jitendra Chidrupa said...

Sorry, to say Satya Nadella is a Brahmin.
http://www.dnaindia.com/money/report-studious-hardworking-boy-has-achieved-his-goal-says-satya-nadella-s-dad-1959411

varathu said...

Even Sunder Pichai also hailed from Brahmin community.

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