Microsoft CEO Nadella Sells Half of MS Shares

Satya Nadella, CEO of Microsoft [Photo by AFP Yonhap News]

[Asia Economy Reporter Byunghee Park] Satya Nadella, CEO of Microsoft (MS), has sold about half of his MS shares, the Wall Street Journal (WSJ) reported on the 29th (local time). This move is interpreted as a sale of shares to reduce taxes, following the rise in MS stock price that surpassed Apple last month to become the company with the highest market capitalization.

According to a report submitted last week to the U.S. Securities and Exchange Commission (SEC), CEO Nadella sold 838,584 MS shares over two days last week. Before the sale, Nadella held approximately 1.7 million MS shares.

It is estimated that Nadella secured over $285 million in cash from this stock sale.

An MS spokesperson stated, "CEO Nadella disposed of about 840,000 MS shares for various reasons including personal financial planning. He will continue to be dedicated to MS's success, and his MS holdings far exceed the retention guidelines set by the MS board."

Analysts also believe that changes in Washington state's tax law influenced Nadella's large-scale stock sale. Starting early next year, Washington state will impose a 7% capital gains tax on income exceeding $250,000 annually.

Nadella is credited with reviving MS by focusing on the cloud business. Since his appointment in 2014, MS stock price has risen about 780%.

MS stock price continued its upward trend even after the COVID-19 pandemic. With the increase in remote work, demand for MS products grew, and MS stock price rose more than 50% this year.

Since June, CEO Nadella has also been serving as the chairman of the board.