Microsoft's Ballmer Finds Wallet a Little Lighter

A proxy statement filed Tuesday with the SEC, shows that pay for Microsoft's top executives was off 29% overall in fiscal 2009. There won't be much of a chance to make that up in fiscal 2010 as all salaries at Microsoft have been frozen.

By John Fontana
Wed, September 30, 2009

Network World — Microsoft CEO Steve Ballmer received a 5.5% decrease in his overall compensation last year as the company suffered through its first-ever drop in overall revenue, according to documents filed with the SEC Tuesday.

CEOs still getting big perks despite pay backlash

Slideshow: Executive Compensation: The 10 Highest-Paid Tech Chiefs of 2008
Slideshow: Luxuries for Leaders: How IT Chiefs Reward Themselves

The documents also reveal that Microsoft paid Stephen Elop, who heads Microsoft's business division, a hefty $4.1 million in relocation expenses. Elop joined the company in January 2008 moving from Silicon Valley to the Seattle area.

Ballmer and three of the other executives named in the report – CFO Chris Liddell, COO Kevin Turner and Entertainment and Devices Division head Robbie Bach – also saw their 2009 overall compensation decrease.

Elop was the only one of the five executive's listed who saw his compensation rise in fiscal year 2009. Elop's comparable figure for fiscal year 2008, however, only reflects six month's salary as he joined the company half way through the fiscal year.

Overall, compensation for all Microsoft executives was down 29%.

Ballmer's base salary actually rose from $640,833 to $655,833, but his cash incentives payments were down $100,000 to $600,000 in 2009.

Ballmer since becoming CEO in January of 2000 has not taken any stock compensation. He already owns more than 400 million shares, which gives him ownership of 4.5% of the company.

Liddell, saw his salary increase by $20,000 to $561,667, but his overall compensation dropped 26% from $4.7 million to 3.5 million. Turner's base salary rose $21,000 to $641,667, but his overall compensation dropped 37% from $8.6 million to $5.4 million. Bach's base salary also rose $21,000 to $641,667, but his overall compensation dropped 24% from $8.2 million to $6.2 million.

All the executives suffered their losses based on drops in the fair market value of their stock awards at the time they were granted. Turner was the lone exception as he also suffered a loss in his cash incentive payment of $47,981.

The number likely won't brighten in fiscal year 2010, which started July 1 for Microsoft. The company decided in January 2009 to eliminate merit-based salary increases for fiscal year 2010. The decision also includes freezing base salaries for executive officers at their 2009 levels for fiscal year 2010.

The report also lists the evaluation the Board put forth on Ballmer's performance in 2009 and his merit for compensation via the companies incentive plan.

The evaluation states: "For fiscal year 2009, Mr. Ballmer's Incentive Plan award was $600,000 which was 90% of his base salary. This amount was recommended by the Compensation Committee to the Board based on his performance appraisal by the independent members of the Board and other information deemed relevant, including Mr. Ballmer's performance against his individual commitments, the Company's progress in key product development areas such as Windows and online search, his leadership in expense management which helped to offset the declines in revenue due to the economic downturn, and the financial performance of the Company relative to the 25 largest technology companies (measured by operating income). The independent members of the Board of Directors considered the recommendation of the Compensation Committee and approved Mr. Ballmer's Incentive Plan award."

Follow John on Twitter.

For your IT organization to keep pace with the business, you need a new, faster approach to infrastructure deployment-an approach that increases agility and accelerates time to application value. That's HP Converged Systems. Built on Converged Infrastructure, these systems deliver the industry's first portfolio of pre-integrated, tested, and optimized infrastructure solutions for applications running in virtual, cloud, dedicated, or hybrid environments.
Even though virtualization has brought positive change to enterprise IT over the last decade, some skepticism remains about how valuable virtualization can be in the way companies deliver and run business applications. Uncover the truth about how you can run your business critical applications with confi dence without sacrifi cing
availability or service quality-and at lower costs.
This IDG whitepaper highlights key findings based on the Quickpoll Survey conducted with more than 300 Enterprise and Commercial IT decision makers worldwide about the state of their virtualization of business critical applications. This paper answers such questions as: What drivers are pushing companies to extend virtualization beyond servers? and What value are they realizing? Central to the paper are key results that expose risks of the past (fears of limited ISV support, performance impact) no longer are a factor for companies moving to 80+% virtualized.
This guide focuses on key considerations for IT Architects who are in the process of migrating Java applications from UNIX to Linux as part of their VMware server consolidation project.
This IDC white paper explains how much of the Enterprise IT community is at a crossroads in extending their journey to the private cloud: Companies must virtualize their business critical applications in order to reap the benefits of cloud computing. The paper also includes two case studies and a sidebar highlighting the experiences of three enterprises with virtualizing their business-critical applications, which include Oracle and Microsoft SQL databases, SAP and enterprise Java, and a Microsoft Exchange email system.
This guide provides best practice guidelines for deploying Exchange Server 2010 on vSphere.
Download this webcast to learn about the design considerations for virtualizing SQL workloads, performance and scalability information and high-availability options, as well as support considerations
Download this webcast to learn the virtual hardware design considerations for Exchange 2010, deployment using the building block approach, options for high-availability and disaster recovery and support considerations.
Virtualizing business-critical applications has become a key focus for organizations as they move along their virtualization journey. With the launch of VMware vSphere® 5, VMware is helping customers accelerate the deployment of business-critical applications, including Exchange, SQL, SAP and Oracle.
Want to say goodbye to missed SLAs? VMware can help you virtualize mission-critical applications such as Oracle, MS Exchange and SharePoint to achieve dramatic improvements in uptime, performance and responsiveness. In this webcast, we'll discuss the key benefits of virtualizing your agency's most critical applications and Oracle databases as a necessary first step in fulfilling OMB's mandate to move IT services to the cloud. With VMware, you'll be on the way to quick, effective and full compliance.
The complexity, cost and technological bloat of traditional Java EE application servers are often barriers to running a lean and efficient IT organization. Increased need for scalability and rapid application delivery are driving businesses to reconsider the platform they use for application deployment. By combining the portability and agility of the Spring framework with a lightweight application server, your organization can meet business demands while staying within budget constraints. VMware vFabric™ tc Server is a modern, lightweight Java application server based on Apache Tomcat. It improves developer productivity, control and manageability-and is the most flexible platform for virtualizing Java applications and workloads for the cloud. View this webcast to learn about real-world examples of companies that have adopted VMware vFabric tc Server and how to plan for future cloud deployments.
Traditional disaster recovery solutions are often too expensive, complex and unreliable to meet business requirements. As a result, IT departments are hesitant to expand disaster protection beyond their most critical applications, largely because they are uncertain whether the quality of the protection is really worth its cost. VMware vCenter™ Site Recovery Manager 5 is the market-leading disaster recovery product that addresses this situation for organizations of all kinds. It complements VMware vSphere to ensure the simplest and most reliable disaster protection for all virtualized applications.
Newsletter Sign-Up »

Receive the latest news test, reviews and trends on your favorite technology topics

Choose a newsletter
  1. View all Newsletters | Privacy Policy
Resource Center