Microsoft CEO Satya Nadella’s $96.5 Million Pay Stirs Debate Amid Layoffs and Game Pass Price Hikes

Microsoft has seen turbulent times in recent years, with over 10,000 layoffs, the closure of beloved studios like Arkane Austin and Tango Gameworks, and repeated price hikes for Xbox Game Pass and consoles. Yet, despite this backlash, the company posted a strong fiscal year in 2025—and CEO Satya Nadella’s compensation reflects it.

According to CNBC, Nadella is set to earn $96.5 million in 2025, a $17.4 million increase from last year. To put that into perspective: at the top-tier Game Pass price of $30 per month, Nadella’s payout could cover over 3.2 million months of the service—or 268,055 years. A playful comparison notes that 268,055 years ago, Neanderthals roamed the Earth, and in roughly that same span, Nvidia might be worth $1 quintillion.

Interestingly, Nadella voluntarily took a 50% pay cut in response to major cyberattacks on Microsoft (via TechSpot). Yet his 2025 compensation largely comes from stock awards ($84.245 million) and performance-based incentives ($9.55 million), with other pay components amounting to just $196,294.

The 2025 proxy statement details Nadella’s performance metrics, which reportedly reached 140% in security, 160% in products, customers, and stakeholders, and 155% in culture. He may acquire 265,106 shares through vesting, currently valued at $110 million. Notably, if he were fired without cause, he would be entitled to $183 million, while voluntary retirement would secure him $145 million.

Nadella’s massive compensation is raising eyebrows given the simultaneous price increases for Xbox products and the ongoing industry fallout from layoffs and studio closures. Critics argue it underscores the widening gap between executive pay and employee hardship, even in a company that remains one of the world’s most profitable tech giants.