Is there a 'China angle' behind Microsoft CEO Satya Nadella’s $5.5 million salary cut?

economictimes.indiatimes.com:

Microsoft CEO Satya Nadella’s compensation surged by 63% in fiscal year 2024, reaching around $79.1 million (approximately Rs 665 crore), largely due to a substantial increase in stock awards, TOI reported, citing Microsoft’s recent U.S. Securities and Exchange Commission (SEC) filing. Stock awards rose from $39 million last year to $71 million, significantly boosting his overall earnings. However, the filing also revealed that Nadella requested a reduction in his cash compensation, citing cybersecurity concerns and hinting at a possible “China angle” in the decision.

Breakdown of Nadella’s Earnings

According to the SEC filing, Nadella’s compensation for fiscal year 2024 includes:

• Stock Awards: $71.2 million (approx. Rs 600 crore)
• Non-Equity Incentive Plan: $5.2 million (approx. Rs 44 crore)
• Base Salary: $2.5 million (over Rs 21 crore)
• Miscellaneous Compensation: $170,000 (approx. Rs 15 lakh)

Nadella's cash incentive was cut to $5.2 million from an expected $10.7 million. His base salary and additional compensation bring his total cash-based earnings to approximately $7.87 million. The CEO requested this reduction due to heightened cybersecurity threats and breaches.

Nadella’s Accountability in Cybersecurity Breaches

Nadella’s decision was reportedly influenced by Microsoft’s role in several cybersecurity breaches, including a significant incident in July 2023, when a global outage impacted Windows users. Earlier in April, the U.S. Department of Homeland Security had published a report on China's breach of U.S.