Satya's 2020 Bonus
We’re in Q4, which means a lot of people are getting year end bonuses, including the execs at Microsoft! Last week, Microsoft released their FY20 compensation report that describes how they set targets, evaluate performance, and ultimately determine executive compensation.
I thought the most interesting part was the metrics that executives are measured against, and the importance of each metric. Some highlights:
- Cloud has been Microsoft’s core focus for the last few years, and its weight/importance is continuing to increase in FY20
- Windows devices is no longer a core metric, and it’s been replaced by Teams active users (and they REALLY exceeded on this goal)
- Gaming is making an appearance as a top level performance metric (more on this below)
- They’ve met or exceeded every goal!
So the executive team is doing very well. How much are they all going to make this year?
- Satya Nadella (CEO) - $44.3M
- Amy Hood (CFO) - $19.6M
- Jean-Philippe Courtois (EVP, Global Sales) - $13.9M
- Margaret Johnson (EVP, Business Development) - $9.6M
- Bradford Smith (President, Chief Legal Officer) - $16.7M
Since Satya was appointed CEO in 2014, Microsoft’s market cap has increased by literally a trillion dollars ($1.3T to be more accurate). Seems like shareholders are getting a good deal!