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 companys 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.