Microsoft CEO Satya Nadella received a total compensation of $90.6 million in the past fiscal year, a $6 million decrease from the prior year, according to a regulatory filing released on October 21. The reduction follows a decline in Microsoft’s stock value during its 2026 fiscal year, which ended on June 30.
Nadella’s compensation package includes a $2.5 million base salary, unchanged since 2014, along with $77.5 million in stock awards and a $10.3 million cash bonus. Additional compensation totaled $259,204, covering items such as charitable gifts, pension contributions, and security. The median employee’s compensation rose from $200,000 to $215,000 this year.
In a separate development, Microsoft has offered voluntary exit packages to nearly 60,000 employees globally. The buyouts, which include continued stock vesting and health insurance, are available to eligible staff in finance, human resources, Copilot, and AI experience roles. Employees have until early December to decide. U.S. employees at levels 64 and below receive one week of base pay per six months of service, while those at levels 65 to 67 receive two weeks per six months.
Microsoft has stated that the buyouts are not a replacement for layoffs but are part of efforts to adjust to changing business needs amid pressure to control costs while investing in AI infrastructure. A company spokesperson noted that layoffs remain an option depending on business conditions. The first buyout offer follows months of layoffs at the tech giant, which has faced scrutiny over its spending on data centers and AI initiatives.
Eligibility for the buyout varies by team, location, and tenure, with offers in India including up to 39 weeks of salary but excluding extended healthcare. Microsoft has not announced plans for additional buyouts at this time, though internal communications suggest future voluntary exit offers may be considered based on workforce needs. The company’s quarterly earnings report, scheduled for release on Wednesday, may provide further details on the financial impact of these measures.
HR experts advise employees considering the buyout to evaluate the offer’s full value, including stock vesting schedules, health coverage duration, and replacement insurance costs. The decision to accept or decline the offer depends on individual financial circumstances, career goals, and long-term employment prospects.