Satya Nadella Microsoft CEO Sells His Half Microsoft Stake For $285 Million, Still Committed To The Company’s Growth

Deep Gautam
5 Min Read

Satya Nadella Microsoft CEO has reportedly sold off half of his holdings in the Microsoft company. As per the SEC filing, he sold about 8,40000 shares in multiple transactions, bringing him approximately $285 million.

The stock sell-out took two days (22 and 23 November) to complete his $285 million worth of shares. As per Microsoft’s Securities and Exchange Commission filing, the average price apiece ranged from $334 to over $349. To fill in the missing gaps, Microsoft will be holding its annual shareholders’ meeting on Tuesday morning.

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Before Satya Nadella microsoft ceo, The wealthiest person on the earth Elon Musk also reduced his holdings in Tesla – A vehicle manufacturer, especially electric cars. Elon Musk’s tweet that asked people whether he should retain his shares or sell out a fraction of them went viral on the micro-blogging site Twitter, and the majority of his followers suggested he divest his holding in Tesla. Elon Musk also agreed to the suggestion and sold out a portion of his stake.

Satya Nadella’s sudden decision to let go his half of the Microsoft shares he owned came as a shocker to the people and ensued a slight deep in the company’s stock price. To stop further loss, the tech company came forward to clear that Satya Nadella’s decision to sell out his half shares is for his personal financial planning and diversification in the investments. The company clarifies that Satya Nadella microsoft ceo had amassed a surplus quantity of shares than the limit set by the Microsoft Board of Directors. Microsoft, through its appeal, also convinced the investors that Satya Nadella is still committed to the success of the company he joined in 1992.

Satya Nadella microsoft ceo still possesses about 8,30,000 shares in Microsoft which are valued at $280 million in the present. Additionally, he has earned more than $40 million in incentives over two years, excluding his $2.5 million annual salaries. Since Satya Nadella was appointed the CEO, Microsoft has seen an exponential growth of about 780 percent in its market capitalization value, which now stands at $2.53 trillion.

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Analyzers Predict Another Reason Behind Satya Nadella Microsoft CEO Stock Sell Out

The Washington lawmakers, the last April, passed a Capital Gain Tax Law that will enforce a 7 percent capital gain tax on the stock and business ownership sales exceeding $250,000. However, the tax law will be effective from 1 January 2022.

Microsoft cleared Satya Nadella’s intention behind his stock sell-out, but it does not define what his financial plans consist of. Analyzers believe the upcoming capital gain tax law was one of the reasons behind Satya’s sudden stock sell-out.

Utilization Of Capital Gain Tax Sourced Funds

The Capital Gain tax that will be implemented in Washington on 1 January 2022 is estimated to source more than $550 million annually. The new law targets Stock and business ownership sales, and the transactions exceeding $250,000 are taxed at 7 percent. A significant portion of the estimated $550 million through the tax law will be diverted towards education and childcare.

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Satya Nadella Microsoft CEO Journey At The Company

Satya Nadella joined Microsoft in 1992 and helped the company progress with his efforts and leadership in enterprise and consumer businesses. He directed the tech company as the CEO until 2021 and later as chairman.

Under Satya Nadella microsoft ceo, the company has bulked up its Azure cloud unit. The company is also minting money from its core Office 365 suite of Word, Excel, PowerPoint, and other business software and its LinkedIn corporate social networking unit and Xbox gaming division.

Microsoft’s Azure cloud subsidiary has grown in size under the leadership of Satya Nadella. Microsoft is also making money from its core Office 365 suite of business software (including PowerPoint, Word, Excel, One Note, Outlook other tools). It also makes money from its LinkedIn corporate social networking operation and its Xbox video game division.

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