Microsoft CEO Satya Nadella’s pay falls 6% to $90.6 million as Xbox misses a proxy target

Xbox’s missed performance target reduced Microsoft CEO Satya Nadella’s annual pay, according to materials prepared for the company’s shareholder meeting.

Nadella will receive $90.6 million, which is $5.8 million less than a year earlier.

The figures come from documents prepared for the annual shareholder meeting. The gaming division was the only Microsoft unit that failed to meet its goals.

The other divisions met or exceeded their targets. Lower results from gaming affected the variable portion of Nadella’s compensation, including bonuses for hitting performance targets. He still ranks among the highest-paid executives in the world.

Over the past 12 months, Microsoft shares have risen about 3%, while the S&P 500 index gained 15%. Stock market performance does not directly reflect the state of the gaming division, but the gap highlights the company’s problems.

The documents also describe changes to the board of directors. Stripe co-founder and head John Collison will join it. LinkedIn co-founder Reid Hoffman and Disney CFO Hugh Johnston will leave the board after serving since 2017. Shareholders will also be asked to approve the nomination of Carmine Di Sibio, the former head of EY.

The meeting will take place on December 8, 2026.