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Ballmer Gets Only Half His Possible Bonus

By - Source: SEC | B 47 comments

Microsoft's CEO is routinely chastised for the company's dismal stock performance, but it is unlikely that anyone will complain about his rather modest compensation.

In addition to his $685,000 base salary, Ballmer is entitled to up to twice that - or $1.37 million - as a bonus, depending on the company's performance. However, the board only approved a bonus of $620,000 for the past year - or 91 percent of his "target award," according to an SEC filing. In the year before, Ballmer received $685,000 bonus.

Of course, $600K is nothing to sneeze at, but it reflects a fiscal year that included Microsoft's first ever quarterly loss due to a write-down for the acquired Aquantive, as well as continued heavy losses in Microsoft's online business and the overall operating income performance of Microsoft "relative to 25 large technology companies."

The summarized evaluation, including Ballmer's self-evaluation, considers the factors of:

"substantially completing development of Windows 8 and the new Office suite; successful launch of SQL Server 2012 and System Center 2012 contributing to 12% growth in Server and Tools Business revenue; integration of Skype; progress in introducing new form factors such as Surface; strong operating expense discipline; modest growth in Windows Phone market share; the 3% decline in revenue for the Windows and Windows Live Division (1% after adjusting for the impact of the Windows Upgrade Offer); slower than planned progress in the Online Services Division; the Windows division failure to provide a browser choice screen on certain Windows PCs in Europe as required by its 2009 commitment with the European Commission; and overall solid business performance that produced $31.6 billion in cash flow from operations, an increase of 17%."

Among Microsoft's top executives, Ballmer received the lowest bonus compensation. CFO Peter Klein received $950,000, president for the Office Division Kurt DelBene was awarded $1,812,500, president for the Windows Division Steven Sinofsky got $1,520,00, and COO Kevin Turner topped the charts with $2,400,000. Ballmer's total compensation, which did not provide him with any stock awards for the 2012 fiscal year, rang in at $1,318,128. The highest paid Microsoft executive was COO Kevin Tuner with a total compensation of $10,683,671.

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Top Comments
  • 18 Hide
    sardonicjester , October 11, 2012 3:27 PM
    JustPosting52There really needs to be regulation is this country to limit how much people can make, or distribute the difference to the people that actually work hard and deserve it.


    This is the exact kind of mindset in this country that just kills me. Who the fuck do you think you are? What in the world makes you think you are entitled to someone else's earned money?
  • 18 Hide
    inerax , October 11, 2012 2:41 PM
    Guess his stock is going to have to make up for that.....

    Maybe they should approve a new CEO.... Time for something new.
  • 17 Hide
    Menigmand , October 11, 2012 3:27 PM
    Poor guy. My heart goes out to him and his family in this time.
Other Comments
    Display all 47 comments.
  • 18 Hide
    inerax , October 11, 2012 2:41 PM
    Guess his stock is going to have to make up for that.....

    Maybe they should approve a new CEO.... Time for something new.
  • 7 Hide
    bucknutty , October 11, 2012 2:48 PM
    Change is good.
  • 6 Hide
    DRosencraft , October 11, 2012 2:59 PM
    I say give him a little more time. He's been trying to redirect the trajectory of a company that was already heading the wrong way when he took over. At least lets see how he handles the current slate of offerings under his direction (Win8, Surface, etc.). I say give him at least until early 2014 to see what he does. If nothing changes by then, maybe it's a good time to rethink the leadership.
  • -9 Hide
    Anonymous , October 11, 2012 3:15 PM
    Meanwhile, back in poorsville, I'm stuck at $30,000.... Bonus? Hah!

    Yeah... There really needs to be regulation is this country to limit how much people can make, or distribute the difference to the people that actually work hard and deserve it.
  • 13 Hide
    boiler1990 , October 11, 2012 3:20 PM
    JustPosting52Meanwhile, back in poorsville, I'm stuck at $30,000.... Bonus? Hah!Yeah... There really needs to be regulation is this country to limit how much people can make, or distribute the difference to the people that actually work hard and deserve it.


    And violate one of the reasons we have a semi-free market economy? Why? That's a terrible idea.

    Should we regulate what people do with federal money (subsidies, bailout $$, etc)? Absolutely. But if the company made it, they can do whatever they please with it.
  • 17 Hide
    Menigmand , October 11, 2012 3:27 PM
    Poor guy. My heart goes out to him and his family in this time.
  • 18 Hide
    sardonicjester , October 11, 2012 3:27 PM
    JustPosting52There really needs to be regulation is this country to limit how much people can make, or distribute the difference to the people that actually work hard and deserve it.


    This is the exact kind of mindset in this country that just kills me. Who the fuck do you think you are? What in the world makes you think you are entitled to someone else's earned money?
  • 1 Hide
    knodel12 , October 11, 2012 3:36 PM
    Come on people. A CEO is to a company like the president is to America. They only have so much power, and in realistic view, windows 8 and everything else would've came out anyway.
  • 11 Hide
    luciferano , October 11, 2012 3:52 PM
    JustPosting52Meanwhile, back in poorsville, I'm stuck at $30,000.... Bonus? Hah!Yeah... There really needs to be regulation is this country to limit how much people can make, or distribute the difference to the people that actually work hard and deserve it.


    You don't deserve anyone else's money. If you want more money, why don't you go start up a multi-billion dollar company? A post like this deserves far harsher words than I'll be giving.

    knodel12Come on people. A CEO is to a company like the president is to America. They only have so much power, and in realistic view, windows 8 and everything else would've came out anyway.


    The CEO has plenty of power to make the product better. Metro in of itself is an excellent concept, but the execution of it on the desktop/laptop was poor, to say the least.
  • -6 Hide
    Anonymous , October 11, 2012 4:21 PM
    "luciferano
    You don't deserve anyone else's money. If you want more money, why don't you go start up a multi-billion dollar company? A post like this deserves far harsher words than I'll be giving."

    Because I'm a technician, not a business man. And I have plenty of harsh words for people like you as well.
  • -1 Hide
    booyaah , October 11, 2012 4:30 PM
    JustPosting54"luciferano You don't deserve anyone else's money. If you want more money, why don't you go start up a multi-billion dollar company? A post like this deserves far harsher words than I'll be giving."Because I'm a technician, not a business man. And I have plenty of harsh words for people like you as well.


    I think it is the job of the CEO to take the company down the right direction. If the other executives do not agree or he cannot convince them, then I think it would be the best decision to step down from that position and let someone else have their shot.
  • -9 Hide
    Kami3k , October 11, 2012 4:31 PM
    luciferanoYou don't deserve anyone else's money. If you want more money, why don't you go start up a multi-billion dollar company? A post like this deserves far harsher words than I'll be giving.The CEO has plenty of power to make the product better. Metro in of itself is an excellent concept, but the execution of it on the desktop/laptop was poor, to say the least.


    "why don't you start up a multi-billion dollar company?"

    I really hope that is sarcasm, if not, I hope you are unable to breed.
  • 2 Hide
    luciferano , October 11, 2012 4:36 PM
    Kami3k"why don't you start up a multi-billion dollar company?"I really hope that is sarcasm, if not, I hope you are unable to breed.


    I was pointing out that if he wanted money to be distributed like that from the rich just because he wants the poor to be given hand outs, he should give it a try himself and see how difficult it is to get such a company started like Bill Gates did, let alone keep it running. I didn't think that the meaning was too subtle, was it?
  • 5 Hide
    DRosencraft , October 11, 2012 5:06 PM
    Is executive compensation out of control? Yes. Is there anything that can be done about it? Not unless you own preferred stock in the company (i.e. you have voting rights). I like the free market system, but there are definitely those who take far too much advantage of that system. Yes, a CEO works very hard. Does that neccessarily mean they deserve a seven figure yearly salary? They could easily live a very, very, comfortable life with far less. Alas, the ones who set compensation are the owners and shareholders of a public company. So, while most of us look at those compensation pacakages and bemoan the ridiculous logic that goes into paying someone like that, the only solution is for the shareholders in these companies to say something about it.
  • 4 Hide
    zubikov , October 11, 2012 5:17 PM
    Did anyone mention he has more than 333 million shares of MSFT alone? That's about $10 billion. You think he cares about his bonus? He sneezes and MSFT goes down a few percent, diminishing his net worth by hundreds of millions in a matter of days. He can give 2 shits about this bonus.

    That salary + bonus figure is only for clueless media to pore over when they have nothing better to write about.

  • 4 Hide
    king_maliken , October 11, 2012 5:17 PM
    JustPosting52Meanwhile, back in poorsville, I'm stuck at $30,000.... Bonus? Hah!Yeah... There really needs to be regulation is this country to limit how much people can make, or distribute the difference to the people that actually work hard and deserve it.


    Hmm, I know you're probably (or so I hope) just kidding or you're an idiot. What you just described is a communist ideology, although I have nothing against communists except for the fact that their ideology makes no sense to me. If everyone deserves the same allocation, the same luxuries; then lack of ambition and even inhibition is the standard for that society (do what you want when you want, do the least you can since you'll receive the same anyhow). Communism fails when applied, since people want things for themselves and not for the greater good (well not entirely). Humans are selfish when it comes down to it, thus corruption, revolutions and so on.
  • 2 Hide
    Azn Cracker , October 11, 2012 5:19 PM
    JustPosting52Meanwhile, back in poorsville, I'm stuck at $30,000.... Bonus? Hah!Yeah... There really needs to be regulation is this country to limit how much people can make, or distribute the difference to the people that actually work hard and deserve it.
    Yea!!, wait a minute. Isn't that communism??
  • -3 Hide
    jkhoward , October 11, 2012 5:20 PM
    This JustPosting54 guy is an idiot.. you are one of the reasons America is such a shit hole right now. Move out of the country and get lost. Go America!
  • 3 Hide
    blurr91 , October 11, 2012 5:21 PM
    JustPosting52Meanwhile, back in poorsville, I'm stuck at $30,000.... Bonus? Hah!Yeah... There really needs to be regulation is this country to limit how much people can make, or distribute the difference to the people that actually work hard and deserve it.


    I totally agree. I'll quit my job and you redistribute half of your salary to me.
  • 0 Hide
    Azn Cracker , October 11, 2012 5:22 PM
    king_malikenHmm, I know you're probably (or so I hope) just kidding or you're an idiot. What you just described is a communist ideology, although I have nothing against communists except for the fact that their ideology makes no sense to me. If everyone deserves the same allocation, the same luxuries; then lack of ambition and even inhibition is the standard for that society (do what you want when you want, do the least you can since you'll receive the same anyhow). Communism fails when applied, since people want things for themselves and not for the greater good (well not entirely). Humans are selfish when it comes down to it, thus corruption, revolutions and so on.
    I agree completely. If we were all robots, communism would be perfect. Communism as an idea sounds great, but it will never happen because people are selfish.. Even the Soviet Union didn't go 100% communist.
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