Microsoft CEO Nadella asked for pay reduction after security slip, but total comp still rose 63%

▤ Summary

Nadella is betting a new generation of computers with specialized artificial intelligence chips and faster performance will revive the long-running rivalry between Windows PCs and Apple Inc.s Mac. The requested reduction came after the U.S. Department of Homeland Security in April published a report that followed an independent review of Chinas breach of U.S. government officials email accounts. Microsoft said it would revamp its practices to address shortcomings highlighted in the government report, which said that "customers would benefit from its CEO and board of directors directly focusing on the companys security culture." The cash incentive part of Nadellas pay mostly takes into account the software makers performance in relation to revenue and operating income targets. "Mr. Nadella agreed that the Companys performance was extremely strong, but reflecting on his personal commitment to security and his role as the CEO, asked the Board to consider departing from the established performance metrics and reduce his cash incentive to reflect his personal accountability for the focus and speed required for the changes that todays cybersecurity threat landscape showed were necessary," the committee wrote.

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