Norway’s $2 trillion Sovereign Wealth Fund formally voted against CEO Satya Nadella’s new $96.5 million compensation package. The fund ranks as Microsoft’s eighth-largest shareholder.
The major investor also opposed Nadella’s continuation as board chairman. It cited concerns over executive pay transparency and the principle requiring separation of the CEO and chairperson roles.
Despite this significant dissent, Microsoft’s board proceeded to approve the increased compensation. The board’s compensation committee justified the decision by pointing to the company’s exceptional progress and performance in Artificial Intelligence (AI).
The approved package marks a 22% increase from the previous year. This rise was largely driven by stock awards linked to Microsoft’s strong share price performance.