Game Pass growth is no longer a metric used to determine Nadella's compensation package:
2021: https://www.axios.com/2021/10/19/xbox-microsoft-subscription-gaming
2022: https://www.axios.com/2022/10/27/microsoft-xbox-game-pass-miss
Details: For 2023, the portion of Nadella pay relating to Xbox content and services revenue, was tied to a growth target of 4.4%, but the division achieved growth of 0.7%, when adjusted for currency exchange rates, according to a new Microsoft filing.
Between the lines: Game Pass subscriber growth exceeded Nadella's pay target for the popular all-you-can-play service in 2020 but fell short the following two years.
- Other sections of Nadella's performance-based pay came closer to their targets or exceeded them, as was the case with goals tied to total LinkedIn sessions and growth in Microsoft Teams usage.
- Nadella's overall cash and stock compensation for 2023 is listed by Microsoft at $48.5 million, down from $54.9 million in 2022.
- In 2022, the Nadella pay target called for 73% growth for Game Pass but it achieved growth of 28%.
- Microsoft said in January of last year that Game Pass had 25 million subscribers.
2021: https://www.axios.com/2021/10/19/xbox-microsoft-subscription-gaming
2022: https://www.axios.com/2022/10/27/microsoft-xbox-game-pass-miss