Washington: Microsoft’s Indian-origin CEO Satya Nadella has netted over $35 million after selling almost one-third of his common shares in the software giant.
Nadella sold 328,000 shares in multiple trades at prices ranging from $109.08 to $109.68 as the stock trades near a record price. The stock sale, disclosed in a regulatory filing on Friday, netted Nadella more than $35 million. Microsoft shares have soared 53% in the past year, closing the week at $109. The record closing price was $110.83 on July 25.
Nadella, 50, still own 778,596 shares of common stock. He is required to have 15 times his base salary in stock. His annual base salary in 2017 was $1.45 million, and his total compensation exceeded $20 million. “The stock divestitures were for personal financial planning and diversification reasons,” a Microsoft spokesperson said.
“Satya is committed to the continued success of the company and his holdings significantly exceed the holding requirements set by the Microsoft board of directors,” he said.
Since Nadella took over the CEO role from Steve Ballmer in February 2014, Seattle-based Microsoft’s shares have tripled in value. He last sold shares in 2016, when the stock was worth around $58 per share. Microsoft has surpassed Alphabet in the market capitalisation for the first time in three years, becoming the third most valuable firm after Apple and Amazon.
￼”Satya is committed to the continued success of the company and his holdings significantly exceed the holding requirements set by the Microsoft board of directors.”
‘Credit for Microsoft’s rise goes to CEO’
- The credit for Microsoft’s rise goes to its CEO Satya Nadella who has been strategically restructuring the company towards Cloud and Office offerings. Microsoft posted a revenue of $26.8 billion and net income of $7.4 billion in its third quarter that ended on March 31.
- Nadella, whose annual base salary last year was $1.45 million and total compensation exceeded $20 million, is required to have 15 times his base salary in stock. After the latest stock sale, he still owns 778,596 shares of common stock, the report said.
- This the second time Nadella has sold Microsoft stock since becoming CEO in 2014. He sold 143,000 shares worth $8.3 million two years ago, according to filings, The Seattle Times reported.
- Office commercial products and Cloud services revenue increased 14% – driven by Office 365 commercial revenue growth of 42 per cent. Microsoft now has over 135 million active Office 365 business users, with 30.6 million Office 365 consumer users.
Nadella will continue to divest shares
Nadella will continue to divest shares in the next year through the structured plan in which he doesn’t control the timing or amounts sold, the company said Friday.
He will sell fewer than half his Microsoft shares through the plan, according to the company.
The sale reported in a filing Friday is the second time Nadella has sold Microsoft stock since becoming CEO in 2014. He sold 143,000 shares worth $8.3 million two years ago, according to filings. “The stock divestitures made were for personal financial planning and diversification reasons,” Microsoft said in a statement.
(With inputs from PTI)