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.