2. INTRODUCTION
Microsoft Corp. today announced that its Board of Directors has appointed Satya
Nadella as Chief Executive Officer and member of the Board of Directors effective
immediately. Nadella previously held the position of Executive Vice President of
Microsoft’s Cloud and Enterprise group.
And he is now the Chief Executive Officer of Microsoft
3. Journey to the CEO
“During this time of transformation, there is no better person to lead Microsoft
than Satya Nadella,” said Bill Gates, Microsoft’s Founder and Member of the
Board of Directors. “Satya is a proven leader with hard-core engineering skills,
business vision and the ability to bring people together. His vision for how
technology will be used and experienced around the world is exactly what
Microsoft needs as the company enters its next chapter of expanded product
innovation and growth.”
“Having worked with him for more than 20 years, I know that Satya is the right
leader at the right time for Microsoft,” said Steve Ballmer, who announced on Aug.
23, 2013 that he would retire once a successor was named. “I’ve had the distinct
privilege of working with the most talented employees and senior leadership team
in the industry, and I know their passion and hunger for greatness will only grow
stronger under Satya’s leadership.”
Founded in 1975, Microsoft (Nasdaq “MSFT”) is the worldwide leader in software,
services and solutions that help people and businesses realize their full potential.
4. Reasons for changing CEO of Microsoft
Microsoft has not done itself or Nadella any favours by taking this long to pick a
CEO. To outsiders, it seems that Microsoft’s board was uninspired by internal
candidates, decided to go hunting elsewhere, couldn’t find a fit, and then
returned home to settle on a familiar face.
As Bloomberg News reported, there also appears to be talk of replacing Bill
Gates as chairman with an existing board member. That’s an odd move, too. It
represents a big break with the past and a willingness to change, for sure. But
Microsoft’s board isn’t exactly known as the most proactive, decisive bunch. So
trade Gates, the legend, for a lesser figure? It’s hard to imagine anyone doing
a monkey boy dance for that.
5. Microsoft’s all acquisitions
Microsoft bought Visio, $ 1.3 Billion, 2000
Microsoft bought Navision, the 1.3Billion$ 2002
Microsoft bought a Quantive, the $6.2Billion, 2007
Microsoft bought Fast Search &Transfer, $1.2 Billion, 2008
Microsoft bought Skype from eBay, $8.5Billion, 2011.
Microsoft Yammer bought the $1.2 Billion, 2012.
Microsoft Nokia's devices and services unit purchased,
$7.2Billionby 2013.
6. Satya Nadella’s Annual Salary
According to his new employment agreement, the Indian-origin CEO of $78-
billion software major will be paid his salary on semi-monthly basis at an annual
rate of $1.2 million (Rs 7.5 crore).
46-year-old Nadella, who has been with Microsoft for 22 years, would also be
eligible for a cash bonus, which can range from zero to 300 per cent, resulting
into total payout of up to $3.6 million. Besides, he would get stock awards to the
tune of $13.2 million, taking the total package to $18 million.
"We expect that you will work with the Compensation Committee of the Board
to assess and revise, if appropriate, the EIP to ensure alignment with business
priorities. There are currently two key components of the EIP," the letter said.
One-third of your LTPSAs will be earned based on Microsoft's total shareholder
return relative to the S&P 500 over each of three overlapping, five-year
performance periods (LTPSA performance periods) commencing on the grant
date and the first and second anniversaries thereof," the letter said.
7. Vision of Satya Nadella for Microsoft
The new CEO reiterated that his focus is for Microsoft to become a
"mobile first" and "cloud first" company, but he offered more details on
what those phrases actually mean. "When we say mobile first, we really
mean mobility first," Nadella explained. "It's about offering users a great
experience across devices, some ours, some not ours, that we we can
power uniquely.“
For the cloud, Nadella is committed to the ongoing mission of one cloud
for everyone and for every device. That mantra is remarkably simple to
Microsoft's original mission statement: "A personal computer on every
desk and in every home, running Microsoft software."
When it comes to Windows, Nadella said the new mobile-first and cloud-first
focal points mean thinking about Windows differently. "We're
starting to think of it as one family, which wasn't true before," Nadella
said.
8. Finally, Nadella discussed his role in reviewing the current business. "As a
leadership team, I feel we have picked up the pace of asking the hard
questions so that we can realistically evaluate our business," he said.
Ultimately, Nadella said, he wants to be accountable to investors, his team
and Microsoft's customers — because "at the end of the day, that's what
matters.“
In other words, his vision is for Microsoft is for it to become less reliant on
vertical integration — and more able to work alongside other systems.
9. Satya Nadella’s life before Microsoft
Nadella, 46, was born in Hyderabad, India. Growing up, playing cricket was his
“passion,” and he played it competitively as a member of his school’s team. “I
think playing cricket taught me more about working in teams and leadership that
has stayed with me throughout my career.”
Nadella “always wanted to build things,” he says. He knew that computer science
was what he wanted to pursue. But that emphasis was not available when he
attended Mangalore University in India, where he got a bachelor’s degree in
electrical engineering. “And so it was a great way for me to go discover what
turned out to become a passion,” he says.
He went on to earn a master's degree in computer science from the University of
Wisconsin – Milwaukee, then a master’s degree in business administration from
the University of Chicago.
Nadella “always wanted to build things,” he says. He knew that computer science
was what he wanted to pursue. But that emphasis was not available when he
attended Mangalore University in India, where he got a bachelor’s degree in
electrical engineering. “And so it was a great way for me to go discover what
turned out to become a passion,” he says.
10. He started his career as a member of the technology staff at Sun Microsystems.
In 1992, he joined Microsoft. He was on his way to get a master’s degree in
business when the Microsoft job offer came. The company was building an
operating system that ultimately would be known as Windows NT, and needed
team members who understood UNIX and 32-bit operating systems, he says.
Nadella wanted to complete his master’s degree and take the Microsoft job
I marvel every day at how people can excel - and that’s what really
gets me going.
11. Thought of Satya Nadella
With a perspective based on more than two decades at Microsoft as someone
who pushed to make dynamic changes happen, both in the company’s
products and its culture, Satya Nadella says he is both “honored and humbled”
to succeed Bill Gates and Steve Ballmer as the third CEO of Microsoft.
“Our industry does not respect tradition - it only respects innovation,” he says.
“The opportunity ahead for Microsoft is vast, but to seize it, we must move
faster, focus and continue to transform. I see a big part of my job as
accelerating our ability to bring innovative products to our customers more
quickly.”
Our industry does not respect tradition - it only respects innovation