Microsoft CEO Satya Nadellla’s $84 million pay package has been approved by shareholders. Nadella who has been with Microsoft for 22 years, held the position of Executive Vice President of Microsoft’s Cloud and Enterprise group before he was appointed CEO in February this year.
In his previous role his total compensation for 2013 came in at $7.6 million. Talk about a pay rise!
Here is a breakdown of the $84 million package:
Base salary: $918,917
Bonus: $3.6 million
Stock Grants: $79.8
The package will not continue at this level though since $59 million of the stock package was issued for the promotion to the CEO position. Aside from performance related bonuses, Microsoft has already announced that Nadella will receive stock valued at $13 million next year.
Microsoft has had a strong year, the stock price has gone up 30% and the latest quarter showed growth across the board. Shareholders have a positive view of the strategy under Nadella however a lot of the growth comes from decisions made under former CEO Steve Ballmer. That being said, the cloud business grew 128% year over year, the business unit Nadella ran before he became CEO.
While Apple had a record quarter last time around, iPad sales continued to disappoint and decreased by 13%.
According to market research firm IDC that trend is going to continue. For the first time since the launch of the iPad it will see a year over year decline which is not surprising if you look at the last few quarters.
Currently the iPad has 27.5% market share which is forecasted to decline to 24.5% by 2018. Android is dominating the space with 67.7% market share but will also experience a slight decrease to 64%.
What Apple and Google leave on the table will benefit Microsoft. During the last earnings we already pointed out that strong demand for the Surface Pro 3 has increased tablet revenues to almost $1 billion and if IDC is right that will multiply as they predict the market share to increase from 4.6% to 11.4%.
Microsoft just announced the acquisition of Acompli, a popular mobile email management app. The company was only founded 18 month ago however the innovative free app has become THE mobile email app for many Android and iOS users. Acompli integrates your calendar and contacts into the same app and it easily allows you to handle attachments from cloud storage providers such as OneDrive, Google Drive, and Dropbox.
While no financial details have been disclosed, the number circulating is north of $200 million. Last year Acompli raised $7.3 million.
Here is what the companies had to say about the acquisition:
“I’m incredibly excited to announce that Acompli has been acquired by Microsoft. Our team and products will become part of Microsoft’s ambitious effort to reimagine productivity for the mobile era,” Co-Founder Javier Soltero said in a blog post.
Microsoft Vice President Rajesh Jha commented on the acquisition as well: “This acquisition brings us an app with innovative technology and a set of talented people who are passionate about reinventing email and communications on mobile screens. It will expedite our work to deliver the full power of Office to mobile devices.”
Microsoft has launched a new Surface Pro 3 ad which once again takes aim at Apple.
“Both a tablet and a laptop in one device? Crazy.
Well, not really. Surface Pro 3 is that and more. Pen, Kickstand, Adobe Photoshop, detachable Keyboard, Office and Windows. The list goes on. Surface Pro 3 – the tablet that can replace your laptop. ”
Let’s compare the two devices objectively: The 12″ Surface 3 Pro and MacBook Air are both powered by an Intel i5 processor, have 4 GB of RAM and the entry-level model has 128 GB of storage. The MacBook Air has up to 12 hours of battery life while the Surface Pro 3 only has 9 hours.
The main advantage of the Surface Pro 3 is obviously the detachable but you will have to buy that separately just like the docking station. The Surface Pro 3 alone costs $999, once you include the keyboard and docking station it will set you back another $300. The MacBook Air retails for $989.