by CIO Staff

Bill Gates, Steve Ballmer Bonuses Cut by Microsoft

Oct 05, 20062 mins

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, reports.

Microsoft’s Bill Gates
Bill Gates

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 The two 50-year-olds’ bonuses were cut by around 13 percent, down to $350,000, Microsoft said, 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

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, reports.

Microsoft CEO Steve Ballmer
Steve Ballmer

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 Raikes also saw an increase in salary of 4.4 percent, up to $595,000, reports.

Gates, Microsoft’s former chief software architect, handed over that post in June to then-Chief Technical Officer Ray Ozzie and said he’d be leaving his day-to-day role at the firm in 2008.

Related Link:

  • Microsoft’s Bill Gates to Leave Day-To-Day Role in 2008

This article is posted on our Microsoft Informer page. For more news on the Redmond, Wash.-based powerhouse, keep checking in.

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