During the fiscal year 2025 (which concludes in June), propelled by the artificial intelligence (AI) boom, Microsoft achieved outstanding performance and witnessed a significant uptick in its stock price. This, in turn, resulted in a substantial hike in the remuneration of CEO Satya Nadella. His total compensation soared to $96.5 million, marking a 22% rise from the $79.1 million he received in the previous fiscal year. This amount represents the highest annual salary he has earned since taking on the CEO role in 2014. It's noteworthy that over 95% of Nadella's compensation is performance-based, with a particular emphasis on stock price performance.

In fiscal year 2025, Microsoft's financial metrics were impressive. Its revenue climbed by 15%, net profit rose by 16%, and the stock price experienced a remarkable surge of over 23%. Microsoft has been actively making strategic investments in the AI sector, with its Azure cloud business emerging as a key contributor to its performance growth.

Next week, Microsoft is set to unveil its first-quarter results for fiscal year 2026. Meanwhile, its fourth-quarter results for fiscal year 2025 have already been released, revealing that both revenue and profit surpassed expectations. In the previous fiscal year, 2024, Nadella's compensation also witnessed a notable increase, reflecting the company's overall positive trajectory and his pivotal role in driving its success.