A full analysis of Microsoft's new CEO compensation Scheme

Microsoft has disclosed the new CEO Satia Nadra (Satya Nadella) 's remuneration package in the newly released document, and after watching, we have lamented that in the next few years, he is not short of money to buy beer.

Let's take a look at a set of numbers, and the minimum will be a 1.2 million-dollar cash salary, which is paid two times a month. In addition, if it does well, it could get a cash bonus of up to 300% of its annual salary, or $3.6 million. Of course, this is not finished, Nadra the new high tube in the 2015 fiscal year also has a 13.2 million dollar share dividend eligibility.

In this way, in the 2015 fiscal year, Barnard is expected to receive a total of up to 18 million U.S. dollars in the remuneration.

Then we'll look at something more complicated. As we all know, Microsoft's newly appointed CEO will be at the helm of Microsoft for the next 10 years. During the 10-year period of his tenure, Microsoft's three "five-yearly Plan" was included, while Microsoft's stock performance would be compared with the S & P 500 performance.

These three "five-plan" were started in 2014, 2015 and 2016 respectively. Obviously, the cut-off time is 2019 years, 2020 and 2021 respectively. Microsoft has targeted the 60th percentile into the S & P 500 performance index. In the three "five-year Plan" period, each "plan" is likely to bring Nadra 600,000 shares of stock rewards. If Microsoft's performance enters the 80th percentile or higher, Nadra will be rewarded with 900,000 shares. In other words, at the end of the three "five-plan", Barnard can get 2.7 million shares of the highest reward.

According to Microsoft's current stock price, the total value of these 2.7 million shares is $98.145 million. However, since the bonuses are based on shares, if Barnard can get 2.7 million shares, it shows that Microsoft is doing a good job, so the stock is likely to appreciate and there should be more than that.

This is a real high salary! Jamie Dimon, JPMorgan's Dimon, paid 20 million dollars this year and has been greatly promoted. As it turns out, the value of Nadra in Microsoft's view is comparable to that of Damon.

Compared with its technology industry peers, Nadra is also a good salary, but there is room for rising. Is it because the charm of the technology industry is no longer that it can only attract talented people with high salaries? Instead, Microsoft's pay is linked to Nadra performance and the company's stock performance. If you want to motivate the performance of your staff, be prepared for enough money.

If Nadra in the term of the company to complete the various indicators, then in fact, Microsoft's pay for him is not high, the current salary of twice times the same. Of course, if the company does not perform well under his leadership, the board can deduct his bonus, so he won't get too much money.