Microsoft gives CEO Ballmer $1.3 million pay package

Microsoft Corporation Chief Executive Officer Steve Ballmer received a $1.3 million pay cheque ($620,000 in salary and a $650,000 bonus) for fiscal 2007, a year which ended June 30 and in which profit at the world's largest software maker topped $14 billion. Microsoft gave Ballmer a modest $6,750 in matches to his 401K retirement plan and approximately $3,000 worth of life insurance and athletic club memberships. Ballmer, who owns about 4.3% of Microsoft's shares, received no equity compensation. He didn't exercise any stock options or vest any stock awards during the year, the company said in the Securities and Exchange Commission filing.

Microsoft's compensation committee "believes that Mr. Ballmer is underpaid for his role and performance," according to the filing. Microsoft did not say what Bill Gates was paid in salary and bonus during the year. Gates, who owns about 9.3% of Microsoft shares, did not receive any stock-based compensation. The SEC requires companies to report the compensation details for a handful of highest-paid executives, and Microsoft said Gates' salary and bonus fell below those of Ballmer, Chief Financial Officer Christopher Liddell and three other executives.

News source: Mercury News

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The compensation committee probably deducted all the broken chairs and armpit sweat stained shirts from his base salary.

He owns $13 billion worth of stock in the company, so his salary is just a pittance to him. He could make $1 or nothing, like Gates and it really doesn't matter.

That's nowhere near as much money as he COULD be earning, considering Microsoft is such a huge company, he could easily claim 10x that amount and it would be in line with other CEO's of other companies.

I can't say I'm a big Steve Ballmer fan, but he's not the worst CEO out there.

I hate to say it but how is this news?" The CEO of the company I work for gets paid $22.5 mil a year! and It only has 200 employees and we are not a software company (be it I write insurance software for them) we are an insurance company!... 1.3 mil is nothing in the world of CEO's

Maybe it's because this site isn't called 'NeoInsuranceCompany'. Being that it's Neowin (that is to say, a site geared towards Microsoft), I'd say a report on Microsoft's CEO's salary is quite within the bounds of a news story.

-Spenser

stifler6478 said,
Maybe it's because this site isn't called 'NeoInsuranceCompany'. Being that it's Neowin (that is to say, a site geared towards Microsoft), I'd say a report on Microsoft's CEO's salary is quite within the bounds of a news story.

-Spenser


The insurance company is besides the point, 1.3 mil is still extreamly low in the tech field...

Samuel Palmisano, CEO of IBM earned $14.4 mil
Craig Barrett,,CEO of Intel earns $13.3 mil

see the trend? MUCH higher then 1.3 mil

neufuse said,
The insurance company is besides the point, 1.3 mil is still extreamly low in the tech field...

Samuel Palmisano, CEO of IBM earned $14.4 mil
Craig Barrett,,CEO of Intel earns $13.3 mil

see the trend? MUCH higher then 1.3 mil


No, it's not beside the point. It's the who, not the how much. Carlos Slim is more rich than Bill Gates is, but how often do you see his name here?

stifler6478 said,
Being that it's Neowin (that is to say, a site geared towards Microsoft)...

Wow, the fan boys on these forums cease to amaze. Neowin is a technology site, not a Microsoft site. Before you get all huffy, please remember that MS is *nothing* more than a company that produces technology tools and toys. MS is not a cause or a religion and Ballmer/Gates are not gods.

Ever wonder what Neo"win" is running (w/ PHP and MySQL)?:
http://uptime.netcraft.com/up/graph?site=www.neowin.net

They picked the right technology for their requirements and apparently Neo"win" didn't need Microsoft. I'm not sure if you're in the business, but in my tenure of experience you get much further by picking the right tool for the job and not getting blinded by brand loyalty. I work for one of Microsoft's largest Gold Certified Partners but I don't hamstring my developers. I let them pick whatever tool they need to get the job done.

BTW - Our American Division CEO opted to take $1 last year... of course there were still all the other fringe benefits and options ;).

Eis said,

No, it's not beside the point. It's the who, not the how much. Carlos Slim is more rich than Bill Gates is, but how often do you see his name here?

Carlos Slim is not more rich then Bill Gates, he is the 2nd richest in the world... currently Gates is worth $59.8 bil and Carlos Slim is worth $57.4 bil at this date... and besides that has NOTHING to do with this article or tech CEO payments or any CEO's payment to start with..

neufuse said,
Carlos Slim is not more rich then Bill Gates, he is the 2nd richest in the world... currently Gates is worth $59.8 bil and Carlos Slim is worth $57.4 bil at this date... and besides that has NOTHING to do with this article or tech CEO payments or any CEO's payment to start with..

You first brought up something about how the CEO of some random insurance company makes more than Steve Ballmer. What?

My point was that as Steve Ballmer is the CEO of Microsoft, even if this is not a site geared towards them (I'm not getting into that debate, I don't care), he still has a huge impact on the technological world. I, personally, hold no interest in Steve's cheque, but I'm sure to some people this is important and interesting news. It's related to technology which is what this site is about. Which brought me to my point:

It's who the person is not so much how much the person makes. That's why I compared Bill Gates (he's from Microsoft also, by the way), who happens to appear quite a bit on this site, to Carlos Slim (about the same amount of cash), who never appears on this site at all.

Do you even pay attention the discussions you start? Try thinking a little bit so I don't have to elaborate a point I already made.

To be honest that isn't that absurd.... there are loads of people who work for companies that make much less than Microsoft and get paid/bonus more.

Take a look at some accountancy firms in London, or even look at the Royal mail service in the UK... looking up for the numbers their CEO got a bonus of £2.2 million on top of his £500,000 salary in 2005 for expected profits of £537m.

That equates to around $5.5 million - which tbh makes this $1.3 look rubbish.

I love all the comments from socialist that say he's paid too much. It's none of your business how much he is
paid. If you don't like what he makes, then send in your resume' to MS and say that you will do the same job that
he is doing for less. I'm sure if you are qualified, they will hire you in a heartbeat. After all, MS is a corporation in
the business to MAKE MONEY. If they only have to pay you 30,000.00 per year, look how much more money investors
for MS will make!

He is being paid too much, its way out of proportion to reality, and one doesn't have to be a socialist to see that, just as one doesn't have to be a fascist to think like you.

http://www.epinet.org/content.cfm/webfeatu...pshots_20060621

http://www.faireconomy.org/research/CEO_Pay_charts.html

You don't see just how this is adversely affecting the rest of the country in regards to what corporate America is doing to it. This is why the USA is now having problems with their imports from China. C.A. willing to pay for the manufacturing of their products except with money... i.e. The costs of all of the population it causes, the cost of more and more Americans losing their jobs, the cost of the health and well being of their children being sub-standard when compared to the rest of the West, etc, etc. Yeah, money and profit is the most important thing there is and human life is nothing to that. No wonder America is going down the toilet with people who think like you being the main the cause. You don't want to see that less and less of the success of corporate America is translating to the rest of the country.

Like I said......for the time being...it is a FREE country. The corporation of MS is free to pay him WHATEVER they
want. As for being "out of line"...I sure don't hear a lot of people complaining what sports "stars" are being paid?
In a free market society, a company can pay (or not pay) anyone whatever they want. If a person does not want to
be paid what a company wants, then the company will look elsewhere. Take the automobile industry for example.
The companies are tired of paying (mostly) unskilled labor 25+ dollars an hour for the type of output they are
getting in return.
If a company wants to go "off shore" perhaps the government of the USA should look at their intrusive tax structures
to lure them back. If the USA went to a fair tax (23% sales tax) they wouldn't be able to hold all of the companies
that want to relocate here. And before you start complaining how a 23% sales tax would break the bank of "the poor"
you should read up on it. An Item that before would sell for 100 dollars after tax would still cost 100 dollars after
tax because the built in tax from the manufacturing side (pass onto consumers) would be reduced. But, I doubt
there are enough brain cells in most of you on here to form an objective opinion on the fair tax, you are too brainwashed by the liberals in the government school systems.
http://www.fairtax.org

Foub said,
He is being paid too much, its way out of proportion to reality, and one doesn't have to be a socialist to see that, just as one doesn't have to be a fascist to think like you.

http://www.epinet.org/content.cfm/webfeatu...pshots_20060621

http://www.faireconomy.org/research/CEO_Pay_charts.html

You don't see just how this is adversely affecting the rest of the country in regards to what corporate America is doing to it. This is why the USA is now having problems with their imports from China. C.A. willing to pay for the manufacturing of their products except with money... i.e. The costs of all of the population it causes, the cost of more and more Americans losing their jobs, the cost of the health and well being of their children being sub-standard when compared to the rest of the West, etc, etc. Yeah, money and profit is the most important thing there is and human life is nothing to that. No wonder America is going down the toilet with people who think like you being the main the cause. You don't want to see that less and less of the success of corporate America is translating to the rest of the country.

naap51stang said,
Like I said......for the time being...it is a FREE country. The corporation of MS is free to pay him WHATEVER they
want.

Have you ever heard of unfair business practices? Its a free country as in freedom of speech and freedom of belief, not freedom to screw over everyone else for a quick buck. Out of all of the 1st world nations the USA is ranked at or near the bottom in most of the things that have to do with quality of life. A growing number of Americans are being left out the so-called "American Dream" now.

As for being "out of line"...I sure don't hear a lot of people complaining what sports "stars" are being paid?
In a free market society, a company can pay (or not pay) anyone whatever they want.

I didn't say out of line, I had said out of proportion. Plus, comparing this to sports stars is comparing apples to oranges. Not the same thing. Still they are paid way too much as well. BTW, there is no such thing as a so-called free market society. Without government protections a free market can not exist for long because of the predatory nature of capitalism. The goal of capitalism is not to compete, but to dominate.

If a person does not want to be paid what a company wants, then the company will look elsewhere. Take the automobile industry for example.

What you aren't getting is that they get paid these overly high amounts EVEN when the company is in bankruptcy or worse at the expense of the employees. They reward incompetence. This is why Enron got into trouble.... Using the same failed policies and methods over and over again is insanity. Its time that corporate America had a mental evaluation.

The companies are tired of paying (mostly) unskilled labor 25+ dollars an hour for the type of output they are
getting in return.

No, they are tired of paying a fair wage so they go to places that pay slave wages. Remember China? The protections for safe products aren't there. You are poisoning your children for profit. It isn't all the fault of China either.

BTW, many of those $25 per hour American factory jobs now pay only an average of $9 per hour... The quality is still far superior than what you're getting from overseas.

If a company wants to go "off shore" perhaps the government of the USA should look at their intrusive tax structures to lure them back.

They have and they still went overseas, and the minimum wage was kept at the same level for ten years as well and same result.

If the USA went to a fair tax (23% sales tax) they wouldn't be able to hold all of the companies
that want to relocate here.

Taxes aren't the problem because many of these high end companies already pay little to no taxes as it is.

And before you start complaining how a 23% sales tax would break the bank of "the poor"
you should read up on it.

As I pointed out that is irrelevant to this issue.

An Item that before would sell for 100 dollars after tax would still cost 100 dollars after
tax because the built in tax from the manufacturing side (pass onto consumers) would be reduced.

Yet places like Canada have an economy that is booming right now while the American economy is going down the toilet all because of your way of thinking.

But, I doubt there are enough brain cells in most of you on here to form an objective opinion on the fair tax, you are too brainwashed by the liberals in the government school systems.
http://www.fairtax.org

Let me guess, you're a Libertopian. Like the vast majority of Libertopians I've talked with you really must hate your fellow citizens. BTW, did you know that the American educational system is ranked 18th in the world while Canada's is 4th?

Ballmer is a chump. He's a nasty and typical "businessman" who I doubt very much actually does much for the company in terms of bringing in revenue, despite the claims that he's "underpaid". Gimme a break. Microsoft will be better off without this guy when someone efficient and professional fills his place.

"Microsoft's compensation committee "believes that Mr. Ballmer is underpaid for his role and performance," according to the filing."

underpaid my ass... if he's been generally getting 1 million a year for quite a while he should have way more than enough to retire comfortably by now.

Glad to see his pay didn't suffer, I wonder whose wages will be paying the EU ...

What I never understand and its semantics really, why a wage smaller than a bonus? Would he not get the same bonus if Vista was a dud? I doubt it ... they're probably always gonna pay him that, although I guess it keeps him on his feet.

Turbonium said,
Who cares?

Exactly. I don't give a **** about how 1 single person is getting paid $1.3 million when there are hundreds of people who can't afford to make end's meet, can't pay their medical bills, and basically die from lack of finances.

Saying he is underpaid to top it all off is laughable. Maybe he does a great job, but there are a lot of us blue collar workers that deserve to get paid a lot more than we are and we don't. I for one *know* I am underpaid for what I do, but it's because of these big wig management type who are getting $650,000 bonuses that prevents me down on the totem poll from getting my raise.

How does one *know* they are being underpaid? Managers get paid lots of money because they are worth it to the company.

Maybe when you run a company that turns $14 billion a year in profits, you can complain about being underpaid.