Steve Ballmer, Other MSFT Execs Take a Pay Cut
A recent SEC filing shows that even the biggest executives at Microsoft are feeling the effects of the tough, economic climate.
To say Microsoft just went through a very bad financial year is an understatement. This past fiscal year was the worst in Microsoft's history so it's no surprise that it also brought the first significant layoffs to come out of Redmond. Last January the company announced a reduction in staff amounting to 5,000, a move that often provokes the same reaction no matter what the company; why don't some of those big-wig executives take a pay cut instead?
Well apparently executives at Microsoft weren't spared either. An SEC filing shows that this year the software company reduced the sums paid to top executives including CEO Steve Ballmer and financial chief Christopher Liddell.
Before we get ahead of ourselves, it's true that the salaries listed for 2009 are all roughly $20,000 more than the salaries listed for 2008. However reductions in bonuses and stock awards have resulted in a lower direct compensation packages for the executives.
Robbie Bach, the highest-paid softie who heads up Entertainment and Devices, made $6.2 million this year, down from $8.28 million last year; Chief Operating Office, Kevin Turner made $5.4 million, down from $8.6 million in 2008 and Chief Financial Officer, Christopher Liddell received $3.5 million, compared to $4.8 million in 2008. Business Division president Stephen Elop saw his overall compensation increase (up to $4.8 million, up from $4 million a year earlier) however Microsoft details that this reflects the fact that Elop joined the company midway through FY08. Finally, CEO Steve Ballmer went from $1.34 million down to $1.27 million.
Check out the SEC filing here (table can be found on page 16).
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Jane McEntegart is a writer, editor, and marketing communications professional with 17 years of experience in the technology industry. She has written about a wide range of technology topics, including smartphones, tablets, and game consoles. Her articles have been published in Tom's Guide, Tom's Hardware, MobileSyrup, and Edge Up.
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ssalim What, a softie makes $6.2 mil a year? huh? what does he do again? and he makes more than Steve Ballmer?!Reply -
danish_2828 Steve Balmer seems to be the most responsible one of all the Execs with the lowest pay. I think they should all make less than him and then they wouldn't have to lay anyone off.Reply -
wildwell Does anyone else find it strange that Ballmer (the CEO) is the lowest paid guy on the list?Reply -
christop So I guess their pay cut was going from 200 mill a year to 170.. Poor things Hope they can sleep well tonight knowing such a tragic event has happen to them.....Reply -
danish_2828 MSFT could save $14.82 million a year if they would reduce all the Execs to Steve's pay. Then they could keep all those 5000 employees and pay them $29,640 a year. I hate Execs. I know it's not much money. But it beats working at Wal-Mart.Reply -
Blessedman what do you with 8M a year salary? There is no such thing as debt or having to take a loan to own anything you would ever want... That is sick!Reply
What can you possibly do to be worth that kind of money? -
socrates047 even with the cuts they still are making more money in one year than people make in their lifetime, when you make that kind of money your standard of living increases, since they don't drive $30 000 sedans, or live in small housesReply