Microsoft shareholders OK huge CEO pay package

SAN FRANCISCO - Microsoft (MSFT) shareholders have approved an $84 million pay package for new CEO Satya Nadella, despite concerns raised by an investor advisory group.

The technology giant has seen strong financial performance and its stock is up roughly 30 percent for the year. But the advisory group, Institutional Shareholder Services, said it has "significant concerns" about the size of stock grants awarded to Satya Nadella, who was named CEO in February.

Microsoft's board of directors named Nadella in February to succeed former chief executive Steven Ballmer. Nadella was granted what ISS calls a "mega" equity award valued at $65 million, with the governance group noting that fully a quarter of the grant may vest for below-market shares.

ISS also expressed concern about the software maker's decision to give its new CEO "substantial" annual equity awards on top of the $65 million award without setting what it considers adequate performance standards.

Nadella's pay largely consists of stock grants that won't vest for several years.

Microsoft said the grants are an incentive for strong performance. Microsoft said shareholders approved the deal at the company's annual meeting Wednesday but detailed voting results were not immediately available.