James Moore: Microsoft boss doesn’t need $84m to keep ship on track

Outlook Nonsensical pay awards are by no means confined to the banking sector, as Microsoft has made abundantly clear with its award of $84.3m to its chief executive, Satya Nadella.

You may remember that Mr Nadella, in addition to running Microsoft, has taken on the role of chief of the karma police. He told women aspiring to be paid similar dizzying sums not to ask for them. That’s just bad karma (man). Instead, they’re supposed to cross their fingers and have “faith that the system will give you the right raise”.

Mr Nadella subsequently apologised and explained that he has been lucky. It’s not luck he’s been relying on so much as stupidity. The stupidity of Microsoft’s remuneration committee.

Mr Nadella’s package amounts to more than five times in one year than what Steve Ballmer, his predecessor, earned in 14 years.

Of course, Mr Ballmer wasn’t exactly a stunning success as chief executive. And he wasn’t short of a bob or two either, having had a huge stake in Microsoft on top of his pay. But he got that through taking a risk and investing in the company in its (very) early days.

Mr Nadella is taking no such risk. His is a one-way bet. The huge share award making up the bulk of his package is supposedly being made to “align his interests with those of shareholders”.

But that’s where it should be anyway. That is where the interests of any Microsoft employee should be because that is their job. They don’t need the karma police, or Microsoft’s remuneration committee, to explain it to them. They are already well aware of it because the alternative is getting fired.