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Microsoft gives Ballmer full pay bonus despite iPad's damage

updated 07:15 pm EDT, Mon October 3, 2011

Microsoft SEC filing claims Ballmer underpaid

Microsoft in an SEC filing confirmed that CEO Steve Ballmer had been given his full possible rewards in his past year's pay. His regularly salary increased two percent to $682,500 for the fiscal year that ended in June but was also matched by a 100 percent bonus, giving him nearly $1.37 million for the year. Even combining this with a 3.95 percent share stake in the company, the committee determining his salary believed he was "underpaid" given his significance and achievements, the overseers said.

It came in spite of mixed results. Most of the credit was given to higher operating income relative to 25 other companies, at $27.1 billion, as well as successful launches like that of the Kinect and Office 365. Key deals with Facebook, Nokia, and Skype, progress in Windows 8, and an "overall strong" fiscal year helped.

Many of the negatives, however, reflected broad problems outside of the core desktop OS and Office businesses, many of which were due to Apple and Google. The iPad played a key role, as Windows revenue saw a very rare two percent yearly decline. Microsoft had a "need for further progress in new form factors," the company said in reference to the competitive gap with Apple in tablets.

Sales of Windows Phone 7 hardware were "lower than expected," it said, confirming that known low figures were below Microsoft's official forecasts.

Microsoft has continued to set highs for its total performance but has been partly leaning on the Xbox for some of that revenue. Its fiscal results have been tangibly slower than some of its most vital competitors. The company has been passed in market cap, revenue and profit by Apple. Just this past week, Microsoft was overtaken by IBM, putting it back below the company responsible for its most crucial PC deal.



By Electronista Staff
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Comments

  1. slboett

    Grizzled Veteran

    Joined: May 1999

    +23

    How does one...

    Get to be one of these CEOs? I KNOW I can underperform as well as any of these chowderheads! And I'll do it for 1/2 the price to boot. Ballmer, he's a laughing stock, but the stockholders are idiots for keeping that joker on the payroll...

  1. bitwrangler

    Fresh-Faced Recruit

    Joined: Sep 2010

    -6

    hold your horses

    While I have no love for Mr. Ballmer (though I do love the fact that he really is a bit inept and kinda goofy) I should point out that while watching these CEO's fail (or don't succeed) we should keep in mind that it's very much like watching pro athletes that don't perform well. While it's easy to simply look at their performance and exclaim ("heck, I could do better"), the fact is that they do represent a small population that had the skills to get to that level in the first place.

    So to anyone who claims that "I could do that" the answer is, unless you are a CEO, then it's painfully obvious that you couldn't do that because you couldn't even get there to begin with.

  1. chas_m

    Moderator

    Joined: Aug 2001

    +14

    Hurrah!

    I'm glad the board recognize what a GREAT job Mr. Ballmer is doing ... for Apple ... and want to keep him RIGHT WHERE HE IS. Amen, I say.

  1. iphonerulez

    Dedicated MacNNer

    Joined: Nov 2008

    +10

    CEO's are untouchable...

    No matter how much damage they do to a company, they end up with nice fat bonuses. How is that manageable. They just have to fire that many employees to make up the cost. I'm not saying that being a CEO is an easy job, but like any position, any bonuses you make should be honestly earned. I feel that if the performance of a company drops or loses money, then the CEO doesn't deserve a bonus. A CEO should come into a company and set a goal saying they can do this or that and should they fail to meet their goals, then again, they don't deserve a bonus. I also don't believe that CEO's should be getting bonuses for firing thousands of employees either. That's just too easy.

  1. facebook_Ian

    Via Facebook

    Joined: Oct 2011

    -9

    iPad damage?

    Microsoft revenue and profits grew... So where is this damage of which you speak?

  1. SierraDragon

    Mac Elite

    Joined: Mar 2004

    +11

    Market Cap

    @ facebook_Ian, "So where is this damage of which you speak?"

    Monkey Boy has presided over a loss of Market Cap value of approx. $300B in 2007 to approx. $200B today. That is an overall loss of 1/3 shareholders' value and the trend continues downward.

    And the fat cats' claim is that execs deserve so much because of how they grow the company, benefit the shareholders, yadayada. It is all BS, just the rich getting richer solely because they have the power to do so. The Monkey Boy payout after dismal shareholder value results proves it.

  1. facebook_Jeff

    Via Facebook

    Joined: Oct 2011

    +4

    How the heck....

    Does Microsoft keep the sweaty bald monkey still around? He hasn't done SQUAT for them...Where's their stock at? It's currently sitting at $24.53 as of this writing. Where's it been over the last 2 yrs? No higher than $31.00 and some change. Yeah facebook_ian...they are doing a bang up job.....

  1. jpellino

    Fresh-Faced Recruit

    Joined: Oct 1999

    +4

    iPad's damage?

    Feh... The fact that he's still around after Vista and Zune is a minor miracle. Microsoft no more holds the secret formula to breaking the iPad's preeminence than any other company. Any MS exec who doesn't regurgitate each time they see another iPad in public deserves a small bit of credit.

  1. facebook_Eric

    Via Facebook

    Joined: Oct 2011

    0

    Where does the money keep coming from.

    It's Microsoft after all.

    Exactly the reason people are protesting on Wall Street.

  1. qazwart

    Fresh-Faced Recruit

    Joined: Apr 2001

    +1

    Is this all that much different...

    Than what Apotheker got for destroying HP, or the $42 million in bonuses that Carly Fiorina got (including a "performance bonus of $10million) when she was kicked out of HP?

    These CEOs are different from you and I. I would have had my a** processed, canned, and handed back to me as I was shown the door after the Vista debacle if I was responsible for that. Instead, CEOs are always given a bonus. Company lost money? Give the CEO a retention bonus, so they don't go elsewhere. Company did well? Give them a performance bonus. Company did poorly, but better than some? Well, these are tough times, so give 'em another bonus.

    One of the things that got me about Jack Welch wasn't the grand pay, but the sheer audacity these CEOs have. This guy was getting $76 million a year, yet GE paid for his apartment, his mistress's apartment, his dry-cleaning, his groceries, and dozens of other expenses. What did he do with his pay? Did he dig a big pit, change his pay to dollar bills, toss it into the pit, and wallow in it like Scrooge McDuck?

    Nor, was he the highest paid CEO either. The same year he earned almost $100,000,000, Gerald Levin earned $164 million for running AOL Time Warner and Stanford Wells earned $216 million for running Citigroup.

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