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NADELLA GETS $13.5M STOCK IN 2015 Featured

Satya Nadella, Microsoft  Microsoft CEO Satya Nadella will receive an annualized stock grant of $13.5 million for the company's fiscal year ending June 30, 2015, according to the new leader's compensation agreement. Filed earlier this month, the agreement also gives Nadella an annual salary of $1.2 million. The stock grant is part of Microsoft's executive incentive plan as is a target cash award of 300 percent of Nadella's annual base salary for both fiscal 2014 and 2015. Long-Term Performance Stock Awards were granted effective February 4.

A third of those are based Microsoft's Total Shareholder Return relative to the S&P 500 over three overlapping five-year performance periods. Vesting is also based on shareholder return with the number shares vesting at the end of each period ranging from 150,000 to 900,000. At $38 per share, toward the middle of this week's stock prices, that ranges from $5.7 million to $34.2 million, He can get $50,000 in reimbursement for costs involved in negotiating the terms of employment. Looking at the terms of the long-term awards, I'd say it's worth the money to understand those and given the size of Microsoft? Compared to agreements I've seen at smaller companies this is relatively modest.

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