Microsoft slashing executive pay, freezing salaries across the board
After wrapping up the worst fiscal year in the company’s history, Microsoft is slashing the compensation of its named executive officers. The company is also set to freeze salaries of all employees for the next year.
Often when a company is struggling, the executives keep on coasting with their cushy salaries and stock compensation. This is not so for the top executives at Microsoft this year who are taking a pay cut based on the company’s poor business performance.
This cut starts at the top with CEO Steve Ballmer whose pay is down to $1.265 million from $1.34 million the year before. Entertainment and Devices Business Unit President Robbie Bach took a whopping pay cut to $6.2 million from $8.3 million the previous year.
Microsoft CFO Chris Liddell saw $3.5 million instead of the $4.8 million he received last year. The company’s COO, Kevin Turner took in $5.4 million as opposed to $8.6 million and Business Division President Stephen Elop took in $4.8 million as opposed to $4 million for a partial year in 2008.
The company saw a 3 percent loss in its 2009 fiscal year on income that was down a whopping 9 percent. It’s refreshing to see that the company is holding Executives responsible for the loss and paying them accordingly.
Microsoft is in a precarious position in the market after the poor performance of Vista. Many businesses never upgraded to Vista, giving the company a black eye in terms of credibility and cash flow.
The iPhone and Google’s Android mobile operating system have also gobbled up market share once held by Windows Mobile. Now the company needs a big hit in order to make a comeback and maintain its domination of the corporate desktop market.
The company is banking its future pretty strongly on the success of Windows 7, which may actually be a good bet. It’s also working on Windows Mobile 6.5 and 7, which aren’t expected to be released until next year.
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September 30th, 2009
What, we are supposed to feel bad for them or something? Give me a break. And $ compensation for these guys isn’t where its at anyway, its stock and stock options.