A recent SEC filing by Microsoft has revealed that CEO Satya Nadella’s pay targets this time around have reduced growth targets for the company’s Xbox Game Pass subscription service. Spotted by Axios, the new target for Nadella’s performance-based incentive for the last fiscal year, which ended on June 30, 2023, was a growth of 4.4 percent for Xbox Content and Services revenue.
The target for revenue growth was not met, with the revenue for Xbox Content and Services growing by just 0.7 percent over the fiscal year. It is worth noting that only 10 percent of Nadella’s performance-based incentives are comprised of the Xbox targets.
According to Axios, Nadella’s targets have previously included growth for Xbox, with last year’s target being a 73 percent growth in subscribers for the Game Pass service. The company was only able to reach a growth of 28 percent, however.
Microsoft recently completed its acquisition of Activision Blizzard. Despite the acquisition, however, Activision Blizzard CEO Bobby Kotick will remain in his position until the end of the year.