Performance means prizes for Microsoft CEO

Following on from my treating staff well post last week, I marvel at the package of Microsoft's new chief and the cunning way the software giant will pay it

Microsoft's long search for a new chief executive might be over but Satya Nadella's journey is only just beginning.

It is not a job to be taken lightly, but how many would love to have a go based on the compensation package he will receive? Let's face it, how many of us would have given Vista the thumbs-up?!

His basic yearly salary will be $1.2m, paid in fortnightly installments, along with a cash bonus of up to 300 per cent of his salary as CEO each year - a further $3.6m.

And to add to that he could well pick up a stock award of $13.2m at the end of the year, providing the firm performs according to plan. That is a not-to-be-sniffed at $18m for year one.

And as part of a longer-term plan, Nadella could pick up more shares over the next 10 years - adding up to a potential 2.7 million shares worth over $100m, according to some estimates.

Now all of this is performance based - if Microsoft does well and performs well in the market, Nadella will enjoy a spiralling bank balance on a regular basis.

But if the company fails to perform under his stewardship, then he will receive his basic salary, but nothing else, thus ensuring Microsoft does not lose out.

Very clever way to employ somebody in a top position and a great way of encouraging them to always strive to achieve the best possible results.