Microsoft CEO Satya Nadella gets $30M pay increase despite layoffs

What’s going on at Microsoft?

Microsoft’s CEO received a significant increase in compensation, despite sweeping layoffs and a voluntary pay cut.

According to a proxy filing released this week, Satya Nadella’s compensation for the 2024 fiscal year topped $79.1 million—up more than $30 million from last year.

“Since the Board of Directors appointed Mr. Nadella as the third Chief Executive Officer in its history in 2014, Microsoft has nearly tripled revenue to $245.1 billion, nearly quadrupled net income to $88.1 billion, and more than quadrupled diluted earnings per share to $11.80,” the filing reads.

“In addition to another year of consistently strong financial performance, Mr. Nadella and his leadership team have positioned Microsoft to continue to drive performance for years to come.”

While Nadella’s base salary remained flat between years, he saw a massive jump in stock awards.

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For most non-unionized workers in Canada, receiving more money is a welcome change to the terms of their employment.

However, it’s important to understand your rights in the event that your boss decides to cut your pay.

Can my employer reduce my wages?

While employers in Canada can make minor changes to the terms of an individual’s employment, substantial adjustments would require consent from the worker.

This applies to non-unionized individuals working full-time, part-time, or hourly in Ontario, Alberta, and British Columbia.

WATCH: Employment lawyer Lior Samfiru breaks down everything you need to know about changes to your job on an episode of the Employment Law Show.

If your salary or pay has been significantly reduced without your consent, there is a very good chance that you can treat it as a constructive dismissal.

In this situation, the law allows you to quit your job and pursue full severance pay.

ADDITIONAL RESOURCES
• Can an employer lower your wages in Ontario?
• Pay cuts in Alberta: Employee rights
• Can employers in B.C. cut a worker’s pay?

However, you shouldn’t resign until an experienced employment lawyer at Samfiru Tumarkin LLP confirms that you have been constructively dismissed.

How is severance pay calculated?

Severance for non-unionized employees in Canada, including those at Microsoft, can be as much as 24 months’ pay.

The amount of compensation you are entitled to is calculated using several factors, including:

To figure out how much you could be owed, use our firm’s free Severance Pay Calculator. It has helped millions of Canadians determine their severance entitlements.

If your employer’s offer falls short of what our Severance Pay Calculator says you are owed, it’s very likely that you have been wrongfully dismissed and should contact us.

Our team regularly resolves wrongful dismissal claims and can help you secure proper severance.

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• Severance pay for provincially regulated employees
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My employer is pressuring me to sign a new employment contract, what should I do?

If the employment contract you initially signed doesn’t give your employer the ability to adjust your pay, you could be asked to accept a new agreement that does give the company permission to make changes.

In the event that you are provided with a new employment contract, have it reviewed by one of our legal professionals before signing anything. You don’t have to accept it on the spot or a few days after receiving it.

In many cases, these agreements away key protections that would otherwise be available to non-unionized employees in Canada.

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• Starting a new job? Here’s how an employment contract could limit your rights
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Validating a new agreement

In order for a new employment contract to be legally valid, your employer must provide you with an additional “benefit”.

Potential benefits could include extra vacation days or more flexibility working remotely.

If your company didn’t include an additional benefit in the new agreement, or you aren’t sure that one has been provided, don’t accept anything until you speak with our firm.

Can my employer punish me for refusing a cut in pay?

If you reject a substantial reduction to your wages, your employer can’t punish you by making negative changes to your job.

In the event that significant adjustments are made to the terms of your employment after objecting to a pay cut, contact an experienced employment lawyer at Samfiru Tumarkin LLP.

We can determine if you were the victim of a workplace reprisal and assess your legal options.

LEARN MORE
• Reprisals at work in Ontario: Your rights
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My employer is pressuring me to quit after refusing a pay cut, what should I do?

No matter how upset your employer is that you rejected a pay cut, the company can’t pressure or force you to resign.

If your boss is encouraging you to step down, document their attempts. Keep any letters, emails, or text messages that show how the company is pressuring you to quit your job.

Once you have gathered all of the relevant documents, don’t resign before seeking legal counsel. We can tell you if you have grounds for a constructive dismissal claim.

LEARN MORE
• Giving notice when voluntarily resigning in Alberta
• Employment Law Show: Facts about forced resignations
• Employment Law Show: How to handle a bad boss

Already resigned?

If you were forced to quit your job for any reason, connect with a member of our team as soon as possible.

In addition to severance pay, you could be owed compensation for any damages associated with the end of your employment.

Can my employer fire me for refusing a cut in pay?

Employers in Canada can fire non-unionized workers if they reject a pay cut.

This is known as a termination without cause. You can be let go for any reason, as long as:

• You are provided full severance pay
• The reasons for your dismissal aren’t discriminatory

However, it’s very unlikely that your boss would be able to fire you for cause in this situation—meaning no severance package or access to Employment Insurance (EI) benefits.

To justify terminating you for cause, the company must prove progressive disciplinary measures were applied and that a lesser punishment wouldn’t be acceptable, which is very difficult to do.

This type of dismissal is reserved for the worst kinds of workplace offences, such as serious insubordination, theft, or assault.

LEARN MORE
• Do I have to look for a new job after getting fired?
• Can I get my job back if I am fired?
• Employment Law Show: Facts about the termination process

Lost your job? Speak with an employment lawyer

If you were fired or let go after refusing a pay cut, or for any reason, contact the experienced employment law team at Samfiru Tumarkin LLP.

Our lawyers in Ontario, Alberta, and B.C. have helped tens of thousands of non-unionized individuals resolve their workplace issues.

We can review your situation, enforce your rights, and ensure that you receive the compensation you are owed.

Disclaimer: The materials above are provided as general information about the rights of non-unionized employees in Canada. It is not specific to any one company and should not be read as suggesting any improper conduct on the part of any specific employer, or a relationship between Samfiru Tumarkin LLP and a specific employer.