Bill Gates, Steve Ballmer Bonuses Cut by Microsoft
By CIO Staff
Microsoft, the world’s leading producer of software, cut the bonuses it recently paid out to Bill Gates, its chairman, and Chief Executive Steve Ballmer in response to a decrease in profit growth over three of the four past fiscal quarters, Bloomberg.com reports.
During the fiscal year that ended in June, both Gates and Ballmer took in $616,667 in salary, an increase of about 2.8 percent over their previous year’s pay, according to Bloomberg.com. The two 50-year-olds’ bonuses were cut by around 13 percent, down to $350,000, Microsoft said, Bloomberg.com reports.
The slowing of earnings growth at the Redmond, Wash.-based firm can largely be attributed to its marketing and distribution efforts for the Xbox 360 gaming console, and the delayed release of its Windows Vista operating system, according to Bloomberg.com.
Kevin Johnson, who heads up Microsoft’s Windows division, received the biggest increase in 2006 salary, with an 18 percent jump to $595,000, though his bonus was also chopped by 9 percent, down to $500,000, Bloomberg.com reports.
Jeff Raikes, who leads the firm’s Office unit, was the sole senior executive to receive an increased bonus, with a 5.3 percent rise to $500,000, according to Bloomberg.com. Raikes also saw an increase in salary of 4.4 percent, up to $595,000, Bloomberg.com reports.