[News] The Magnificent 7 amid AI Boom: How Much do Their CEOs Get Paid?

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According to a report from TechNews, the AI boom has significantly boosted the share prices of the “Magnificent Seven”—Apple, Microsoft, Google’s parent company Alphabet, Amazon, NVIDIA, Meta, and Tesla—resulting in a total market value exceeding USD 16 trillion.

Alongside this growth, the report highlighted that the salaries of the CEOs of these companies have also risen. Notably, Microsoft CEO Satya Nadella’s compensation increased by over 60%, reaching an annual total of USD 79.1 million (approximately NTD 2.537 billion).

The Magnificent Seven of the U.S. stock market includes tech giants like Microsoft, Apple, Alphabet, Amazon, Meta, NVIDIA, and Tesla. These companies primarily focus on artificial intelligence, cloud computing, online gaming, and software and hardware technologies. With AI driving market growth, their stock prices have consistently hit record highs, pushing their total market value above USD 16 trillion, according to the report.

Citing statisitcs by the American Federation of Labor and Congress of Industrial Organizations (AFL-CIO), the report indicated that Tim Cook, CEO of Apple, ranks first among the CEOs of the Magnificent Seven Stocks. For the fiscal year ending in 2023, Cook’s total compensation amounts to USD 63.2 million, which includes USD 46.9 million in stock awards, USD 10.7 million in non-equity incentive plan compensation, and USD 2.5 million in other compensation, such as security costs and expenses for business and personal travel on private jets.

Microsoft CEO Satya Nadella ranks second with a total compensation of USD 48.5 million for the fiscal year ending in 2023. His compensation is largely tied to Microsoft’s performance. As of December 2023, Nadella owns 800,667 shares of Microsoft Corp. According to the Compensation Committee of the Microsoft Board of Directors, Nadella’s salary is set to reach USD 79.1 million in 2024, reflecting a 63% increase, primarily due to his success in steering Microsoft into the AI sector, as indicated by the report.

The third place goes to NVIDIA CEO Jensen Huang, who received USD 34.2 million in annual compensation, reflecting a 60% increase. This total includes USD 26.7 million in stock awards, USD 4 million in non-equity incentive plan compensation, and USD 2.5 million in other expenses. Thanks to the AI boom, Huang’s net worth has skyrocketed sixfold to USD 125.3 billion in just two years. He has also ranked among the top ten richest people in the world for the first time, as the report pointed out.

The fourth is Meta CEO Mark Zuckerberg. Although his salary is only a symbolic USD 1, he receives USD 24.4 million annually, of which protection fees are as high as USD 23.4 million, including USD 9.4 million in direct security costs, and additional USD 14 million to “cover additional expenses related to the personal safety of Mr. Zuckerberg and his family.”

Fifth is Sundar Pichai, CEO of Alphabet, Google’s parent company, who receives USD 8.8 million annually. This includes a salary of USD 2 million and approximately USD 6.77 million for personal security. However, following several major layoffs at Google, Pichai’s salary has drawn criticism from employees worldwide, making it a controversial topic, as the report pointd out.

The sixth place goes to Amazon CEO Andy Jassy, who receives an annual compensation of USD 1.3 million. This includes a salary of USD 365,000 and a security fee of USD 992,764. When the value of vested shares is included, Jassy’s total compensation for 2023 amounts to approximately USD 29.2 million, as the report mentioned.

The seventh is Tesla CEO Elon Musk. Initially, his extraordinarily high salary of USD 56 billion for 2023 was not approved, resulting in the American Federation of Labor and Congress of Industrial Organizations reporting it as 0. However, during Tesla’s shareholders’ meeting on June 13, a new 10-year compensation package worth USD 44.9 billion was approved.

(Photo credit: NVIDIA)