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Updated November 30th, 2021 at 13:41 IST

Why did Satya Nadella sell half of his shares in Microsoft? Everything we know so far

Microsoft CEO Satya Nadella offloaded about 840,000 shares for a sum of more than USD 285 million last week. The company stated it to be for 'personal reasons'.

Reported by: Vishnu V V
Satya Nadella
Image: AP/ PIXABAY | Image:self
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Microsoft CEO Satya Nadella recently sold half of his stake in the company in a series of transactions last week. According to a regulatory filing, Nadella offloaded about 840,000 shares for a sum of more than USD 285 million last week. Microsoft has now informed that the Indian born CEO sold the shares for personal reasons.

The top tier tech company is now a hot topic in the US stock market after its shares suffered a minor drop in prices. Following this, Microsoft came forward to clear the air around the selling of the stocks by its CEO. The Redmond-based company in a statement on Monday said, “Nadella sold the shares for personal financial planning and diversification reasons. He is committed to the continued success of the company and his holdings significantly exceed the holding requirements set by the Microsoft Board of Directors.” 

Microsoft CEO sells company stocks ahead of a new tax law

Meanwhile, the offloading of shares by Nadella also comes ahead of Washington state implementing a controversial new capital gains tax. Passed in April by the US lawmakers, the new law primarily targets stock and business ownership sales with a 7 per cent tax, which will be applicable on long-term capital gains of more than $250,000. The newly passed tax, the first of a kind in history, will be implemented in the state on January 1, 2022. However, Microsoft’s statement about the selling of stocks did not address if the tax factor was included in his ‘personal financial planning’.

Microsoft share price gained closed up more than 2 per cent on Monday and closed at $336.63. Microsoft shares, which were trading at around $36.35 when Nadella became CEO in February 2014, saw a gigantic leap under him. Nadella is said to have sold his shares in multiple transactions on November 22 and 23, according to Microsoft’s Securities and Exchange Commission filing. Meanwhile, Microsoft is set to hold its annual shareholders meeting on Tuesday morning.

Satya Nadella, CEO of Microsoft

Hyderabad born Satya Nadella became the executive Chairman and CEO of Microsoft by succeeding Steve Ballmer in 2014 as the CEO and John W Thompson in 2021 as Chairman. Nadella joined Microsoft in the year 1992 and came to be known for developing iconic products, paving his way to lead the firm as the Vice President of Microsoft's Cloud and Enterprise group. In February 2014, the former Sun Microsystems employee shifted his gear to be inducted as the CEO of Microsoft. Notably, he is a member of the board of trustees of the Fred Hutchinson Cancer Research Center. 

(Image: AP/ Pixabay)

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Published November 30th, 2021 at 13:41 IST

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