Thursday, October 01, 2009
Anders Bylund :: Townhall.com Columnist
Pay Cuts at Microsoft
by Anders Bylund
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It's proxy season for a lot of companies, and that means we get to sneak a peek at their executive compensation packages. Today, we're looking at software mastodon Microsoft (Nasdaq: MSFT).

Starting at the top, CEO Steve Ballmer said "thanks, but no thanks" to stock-based compensation and went home with a paltry $1.28 million in salary and bonusesthis year. That's slightly below last year's $1.35 million package, but Steve qualified for 90% of his potential bonuses. This stellar performance evaluation rests on key points like tight expense management and progress in areas like the online search market and the development of Windows 7.

Of course, Ballmer is no pauper. He owns more than $10 billion in Microsoft stock, so this million-and-change is just a drop in his very large bucket. That's almost always the case when you see altruistic announcements that Apple (Nasdaq: AAPL) CEO Steve Jobs or Google 's(Nasdaq: GOOG) triumvirate of Sergei, Larry, and Eric got a $1 paycheck. It's great publicity, and these guys don't really need the money anyway.

Further down the payroll, the board didn't award 90% of the target bonuses to everybody. Have a look:

% of Target Bonus

Total Direct Compensation

Change From 2008

COO Kevin Turner

68%

$5.4 million

(37%)

CFO Chris Liddell

70%

$3.5 million

(26%)

Robert Bach, entertainment and devices

80% Continued...

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About The Author

Anders Bylund is a Motley Fool contributor.

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