Microsoft only paid 79 percent of Steve Ballmer's incentive bonus in 2013

Microsoft CEO Steve Ballmer got hit where it hurts most when it came to the consequences of slower than expected sales of Windows 8 and the Surface RT tablet: the wallet. In a new proxy statement filed with the U.S. Securities and Exchange Commission this week, Microsoft stated that Ballmer had only received 79 percent of its eligible incentive award for the company's 2013 fiscal year.

The SEC filing shows that Ballmer received his base salary of $697,500 for the fiscal year, but only received a bonus of $550,000. Last year, Ballmer received 91 percent of his eligible bonus, or $620,000. The proxy statement offered the reasons for not giving Ballmer as much of a award this time:

While the launch of Windows 8 in October 2012 resulted in over 100 million licenses sold, the challenging PC market coupled with the significant product launch costs for Windows 8 and Surface resulted in an 18% decline in Windows Division operating income. Slower than anticipated sales of Surface RT devices and the decision to reduce prices to accelerate sales resulted in a $900 million inventory charge.

Ballmer announced his planned retirement from Microsoft over a month ago but the company is still in the process of selecting his successor.

Source SEC.gov via ZDNet | Image via Microsoft

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Spicoli said,

It's liquid assets that pay the bills and not net worth. I'm a millionaire in net worth, but I can't spend any of it.

You seriously don't think Ballmer has many many millions in cash and tons more in assets? Plus he can if he wants to cash out stock at any time, nothings stopping him but a chance the price might dip if he does...

Spicoli said,
It's liquid assets that pay the bills and not net worth. I'm a millionaire in net worth, but I can't spend any of it.
Given the fact that he holds the record for the top stock sell off as an insider by selling $2 billion worth of stock in 2010, I think he'll be okay.

The only thing that I think this means to Steve is probably his ego got hurt a bit. No one wants to be told that they failed in some way, and at the CEO level in particular, these people are usually extremely competitive people that want to win in every scenario (ignore cases such as Yahoo and HP where their past few CEOs have been in-and-out for quick bucks).

Lord Method Man said,
$70k is actual pay that he missed out on. Net worth is mostly an abstract value and doesn't mean he actually has that much money.

So, you wanna start a collection for him? Y'know, if he's at risk of not making ends meet...

It is interesting how we all do that to ourselves. At some point though, there must be tipping point where you simply can't unless you're a gambler.

Slower than expected sales of windows 8?

But but... I thought it is the fastest selling version of windows to date?

no,it doesn't. it only says slower than anticipated surface rt sales, not windows sales. if they wanted to say that about windows 8,they would have added it before surface rt in that sentence.

Lord Method Man said,
"slower than expected sales of Windows 8 and the Surface RT tablet"

that's from the neowin article. my point is, no such terms are used in the source,which is the SEC filing. neowin even quoted it.

vcfan said,

that's from the neowin article. my point is, no such terms are used in the source,which is the SEC filing. neowin even quoted it.

You'll do anything to keep from admitting you were wrong.

vcfan said,

that's from the neowin article. my point is, no such terms are used in the source,which is the SEC filing. neowin even quoted it.

vcfan is RIGHT!

It says "slower than anticipated sales of Surface RT devices" - Page 31 of the source. The Neowin article adds Windows 8.

Take off your hate glasses people.

Order_66 said,

You'll do anything to keep from admitting you were wrong.

Ballmer himself confirmed sales were not doing well and yet they still continue with their excuses.

I like that MS still pays performance bonus on a meager base salary.

Somehow I don't think the Ford guy would accept this compensation package.

Too bad more companies don't think this way.

Y'all know that this is just pocket change for Steve, right? He might have even show them the finger when they announced the 79% bonus. He must be thinking, screw you all, I am the 3rd largest shareholder of MS stock, so this is nothing.. I can even work for $1 a year if that makes you all sleep better

it is not like that at all.

money is money, and even for a billionaire 70k is substantial.


anyone else, who make a breakthrough in career and ended up a billionaire, still remembers their start, and will certainly not laugh off 70k

only people who dont care about money is billionaire kids, who did not make a fortune, but had a fortune given to them.

Short term thinking. Windows 8 made Windows ready for the future: touch & mobility. My sister's generation does everything on mobile devices. Sure right now a Windows 7-like operating system is what people expect whe buying a PC but Microsoft is becoming irrelevant in the consumer-space really fast. Windows 8 is far from perfect but at least its a move n the right direction.

TsarNikky said,
Since when should failure be rewarded? Or, has it become the new way of doing business?

When exactly did Microsoft failed? As an example of what a failure really is, see RIM.

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