Despite recent layoffs, Microsoft's shares have risen, pushing the company's market value to over $3 trillion, largely driven by advancements in AI.

The layoffs were anticipated following Microsoft's acquisition of Activision Blizzard, raising concerns about the company's commitment to employee welfare.

The bulk of Nadella's compensation, amounting to $71.2 million, was derived from stock options, highlighting the company's strong market performance.

Microsoft CEO Satya Nadella's total compensation surged 63% to $79.1 million for the fiscal year 2024, a significant increase from $48.5 million the previous year.

The ratio of Nadella's total compensation to the median Microsoft employee is now 408 to 1, despite his request for a pay cut following a security breach.

Nadella has emphasized that security is a top priority for Microsoft, linking employee bonuses and promotions to cybersecurity performance.

While hardware sales have declined, Microsoft continues to perform strongly in its cloud and office divisions, with an earnings call expected to provide further insights.

In his annual letter to shareholders, Nadella described 2024 as pivotal for Microsoft, particularly following the acquisition of Activision Blizzard in October 2023.

In addition to stock options, Nadella received a base salary of $2.5 million, $5.2 million from a non-equity incentive plan, and $169,791 in other compensation.

Microsoft has faced scrutiny from the U.S. Cybersecurity Review Board due to recent hacking incidents linked to its software security.

Nadella's pay package reflects the board's confidence in his leadership during a challenging period marked by operational hurdles and an AI-focused transition.

The median employee compensation at Microsoft, excluding Nadella, was $193,744 in 2024, indicating a slight decrease from the previous year.