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Microsoft CEO Steve Ballmer took a 5 percent paycut in 2009 due to his company's poor performance. He still is worth more than $10B USD, though.  (Source: Sydney Morning Herald)
Even Microsoft Steve Ballmer can get a pay cut... but unlike most, he's still ultra-rich

Microsoft just filed papers with securities regulators on Tuesday that reveal interesting details about the company's previous fiscal year, which ended June 30.  Among the revelations in the papers were that Microsoft's colorful chief executive officer, Steve Ballmer, took a pay cut due to the company's floundering performance.

Mr. Ballmer, known for his wild antics, love of developers, and disdain for Apple earned $1,276,627 in the 2009 fiscal year, down approximately 5 percent from the $1,350,834 he earned the year before.  He got a slight boost in salary, to $665,833, but saw his bonus slashed by $100,000 to $600,000 (this bonus is reportedly performance based).

Steve Ballmer, unlike some executives receives no compensation in Microsoft shares.  He requested this when he took on the CEO position.  Not that he needs any more shares -- he already owns 408 million, placing his net worth at over $10B USD.

Microsoft is one company that has been careful to make sure its cuts are equitable and encompass its entire workforce.  Most of its high level management took cuts in 2009.  And for the new fiscal year (2010) that started in July, Microsoft has frozen salaries, in an effort to keep up with a challenging financial atmosphere.

The company saw its first ever drop in annual revenue, with 2009 revenue falling to $20.4B USD, down 9 percent.  This drop was largely thanks to a combination of its flagship products' struggles and the weak economy.  In the operating systems market, Microsoft's Windows Vista was a clear leader, but failed to generate energetic sales.  In the online search and MP3 player markets, Microsoft's search engine and Zune music player failed to gain much traction.  And the Xbox 360, despite strong sales, was eclipsed by the Nintendo Wii.

The new year may be one of vindication for Microsoft, though.  The new Zune HD is drawing rave reviews and may finally give the iPod a true sales competitor.  And in the operating system market Microsoft is preparing for an October 22 release of Windows 7, arguably the most highly anticipated operating system to date.  The new OS brings a host of speed ups, a smaller footprint, better security, and much-needed graphical flair.



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Darn
By FITCamaro on 9/30/2009 10:34:27 AM , Rating: 5
Making only $1.2 million instead of $1.3? I'm sure he's crying in his shower rocking back and forth saying "they took ma baby...".




RE: Darn
By TomZ on 9/30/2009 10:38:30 AM , Rating: 5
And really that's pocket change compared to his $10B in MSFT shares.


RE: Darn
By Obujuwami on 9/30/09, Rating: -1
RE: Darn
By Yawgm0th on 9/30/2009 11:08:39 AM , Rating: 3
No, it says he has 408 million shares, placing his net worth at $10 billion.


RE: Darn
By Cypherdude1 on 9/30/09, Rating: -1
RE: Darn
By omnicronx on 9/30/2009 1:55:08 PM , Rating: 5
*gives the troll a cookie*

Its a dirty job, but someone has to feed them :)


RE: Darn
By cjc1103 on 9/30/2009 11:12:19 AM , Rating: 2
You misread the article - he has 408 million shares, worth $10 billion.


RE: Darn
By harmaton on 9/30/2009 11:13:42 AM , Rating: 2
thank you cjc.. you beat me to it.


RE: Darn
By Steve1981 on 9/30/2009 11:11:11 AM , Rating: 2
No. He has 408 million shares, not $408 million in shares.


RE: Darn
By jonmcc33 on 9/30/2009 11:53:38 AM , Rating: 5
Telling someone to read the article and then not reading it properly yourself? Priceless...


RE: Darn
By mfed3 on 9/30/2009 11:54:32 AM , Rating: 2
clown, learn to read.


RE: Darn
By Samus on 9/30/2009 4:59:39 PM , Rating: 2
quote:
Reread the article, It said he had $408M in shares. That is a HUGE difference from $10B!


You'd have to read before you reread! And you shouldn't refer to her as it; she's a fine article this one.


RE: Darn
By Hiawa23 on 9/30/2009 11:09:05 AM , Rating: 2
great, so he makes pennies less. He won't bat an eye.


RE: Darn
By MrBlastman on 9/30/2009 11:29:08 AM , Rating: 3
Secretly, in Steve Ballmer's bathroom an echo was heard one misty morning emanating from the depths of his shower...

"Dollars, dollars, dollars, dollars, dollars..."

Steve Ballmer, a man of action, a man of power, a man... of repeating words.


RE: Darn
By danrien on 9/30/2009 12:41:26 PM , Rating: 3
true - im sure balmer is losing little sleep over this. But it's a smart decision financially for MS - they saved $100,000, which may be pocket change, but helps just as much or more as cutting the salary of somebody who earns $100,000 down to $95,000.


Question..
By StraightCashHomey on 9/30/2009 10:34:45 AM , Rating: 3
I'm just asking because I really do not know - does this guy's salary even matter if he's worth over 10 billion?

I suppose it would be nice to get paid over a million per year in the case that the company goes belly-up (not likely), but his salary seems to pale in comparison to his net worth in shares.




RE: Question..
By mmcdonalataocdotgov on 9/30/2009 11:19:40 AM , Rating: 2
Net worth in shares is 0$ unless he can sell them to someone at their street value. If he ever starts to sell them, the value would go through the floor, so he is kind of stuck with his paltry US$1.2M per year. On the other hand, even if the shares were only worth a dollar each...


RE: Question..
By Steve1981 on 9/30/2009 11:23:16 AM , Rating: 5
It's certainly true that he can't liquidate his holdings without adversely affecting the value of said holdings. However I wouldn't worry about his cash flow too much...

http://www.microsoft.com/msft/FAQ/dividend.mspx

quote:
Microsoft pays a quarterly dividend of $0.13 per share.


That handily beats 1.2M a year.


RE: Question..
By Larrymon2000 on 9/30/2009 12:41:03 PM , Rating: 2
Of course he won't sell 408 million shares in a block trade. The solution is algorithmic trading, iceberging, VWAP strategies. Minimize execution cost and market impact. Every sell-side firm in the world offers this service to large clients. Institutional equity buy-side firms can put in market orders to move 50 million shares in a day; of course Ballmer could move 408 shares if he wanted to. It's not that hard with algos.


RE: Question..
By Griswold on 9/30/2009 1:24:22 PM , Rating: 2
And he would probably get fired by MS if he does because, even if theres a firm handling it for him in the most elegant way, he has to disclose what, when and how much he's selling and then, share price would likely enter free-fall (of course it would, what would you do with your shares if the CEO of titan like MS sells all his shares in short succession?) if he sold his whole package. :P

That in turn would make his buddies at the board of directors and every single investor mighty angry, leading to a swift demission of Mr. Balmer. :O


Super rich maybe...
By Spivonious on 9/30/2009 10:35:32 AM , Rating: 3
But still only .006% of MS's revenue.




RE: Super rich maybe...
By ZoZo on 9/30/2009 12:09:15 PM , Rating: 2
Ummm, he also makes over $200m dollars/year thanks to dividends of his 400m+ shares of Microsoft stock.
That's around 0.3% of Microsoft's revenue, and around 1% of their income.


RE: Super rich maybe...
By choadenstein on 9/30/09, Rating: 0
RE: Super rich maybe...
By Steve1981 on 9/30/2009 1:23:12 PM , Rating: 3
http://www.microsoft.com/msft/FAQ/dividend.mspx

quote:
Microsoft pays a quarterly dividend of $0.13 per share.


RE: Super rich maybe...
By FATCamaro on 9/30/09, Rating: 0
Good
By bradmshannon on 9/30/2009 10:38:01 AM , Rating: 3
This is good, but I seriously doubt he was upset about it. In fact, I wouldn't be surprised if it was partially his idea.




By amanojaku on 9/30/2009 11:14:23 AM , Rating: 2
No one does "hopping mad" like Ballmer!




my heart bleeds for him....
By teng029 on 9/30/2009 1:53:55 PM , Rating: 2
ok, not really.




I doubt the 5% pay matters much...
By Nekrik on 9/30/2009 5:49:23 PM , Rating: 2
but I bet the 9% annual loss does and doubt he'll repeat it again this year.




Dang
By hevets on 9/30/2009 6:25:55 PM , Rating: 2
It's hard out there for a pimp.




Fortuity?!
By Spind on 10/1/2009 1:13:12 AM , Rating: 2
Any article I read, which is of interest is always written by Mick! - I may be reading 'coz these articles end up in heated discussions and has some Masala added!
Is it just co-incidence or DT has only one journalist??




Quote
By rburnham on 10/2/2009 10:24:43 AM , Rating: 2
"The Thing... mother f***er looks just like The Thing."




Steve Jobs makes only a buck
By hiscross on 9/30/2009 7:46:43 PM , Rating: 1
And he is the very best




Not enough
By crystal clear on 9/30/09, Rating: 0
The Windows era is over.
By reader1 on 9/30/09, Rating: -1
RE: The Windows era is over.
By Spivonious on 9/30/2009 10:41:38 AM , Rating: 5
Did you forget to take your pills this morning?


RE: The Windows era is over.
By TomZ on 9/30/2009 10:45:22 AM , Rating: 2
Yeah, really - COME ON PEOPLE, TAKE YOUR MEDS!


RE: The Windows era is over.
By Hieyeck on 9/30/2009 10:45:33 AM , Rating: 4
Good god, that dollar sign thing needs to die. Please let us rate the post down far enough to be DT's first -2 post.


RE: The Windows era is over.
By maveric7911 on 9/30/2009 10:46:28 AM , Rating: 2
Oh the doom and gloom!

Really?.....


RE: The Windows era is over.
By reader1 on 9/30/09, Rating: -1
RE: The Windows era is over.
By damianrobertjones on 9/30/2009 11:02:38 AM , Rating: 2
At times, having one desktop operating system on the majority of pcs can be a good thing as it brings a standard. Yes, a standard. Boring isn't it.

Instead, lets have everyone doing lots and lots of different things. It's a pain in the rear when someone sends over a file that no one's heard of or can open.

Let's open everything up. Yay. Repeat... "Yayyyy". Not.

P.s. Doesn't everyone buy software online anyway? (Or am I grabbing the wrong end of the stick?)


RE: The Windows era is over.
By damianrobertjones on 9/30/2009 11:09:35 AM , Rating: 2
Ahh ha! Now I understand what Reader1 was going on about, I think.
http://www.dailytech.com/Article.aspx?newsid=16379...

Ummm? WHy would anyone pay for the internet, then pay for an app to 'get' the information? Isn't that what Compuserve did in the day with it's own little browser of pain or AOL with it's horrendous additions? Am I still not with it?

Either way, it's hard enough to get people to buy music/games/anything for the pc due to piracy.

I give up. I'm going outside to play..


RE: The Windows era is over.
By amanojaku on 9/30/2009 11:19:44 AM , Rating: 4
Your first mistake was looking at reader1's post. Your second mistake was trying to make sense of it. reader1 rarely makes sense, or says anything that isn't trolling.


RE: The Windows era is over.
By mmcdonalataocdotgov on 9/30/2009 11:22:01 AM , Rating: 2
This was already the original web model and it failed (remember Slate magazine, The Washington Post, etc.) Apps are one thing, but content is worthless. It is site visits and ad revenue that makes money.


RE: The Windows era is over.
By reader1 on 9/30/09, Rating: -1
RE: The Windows era is over.
By damianrobertjones on 9/30/2009 11:49:54 AM , Rating: 2
But if it all becomes a closed platform, where will people get their shady porn? Or illegal apps? Illegal music?

:)

Seriously, if you want to be taken seriously, at all, drop the $ and call Microsoft.. Microsoft.

P.s. Does OSX change anything compared to Microsoft? Think about it.


RE: The Windows era is over.
By TomZ on 9/30/2009 12:06:04 PM , Rating: 3
Don't feed the trolls. :o)


By StevoLincolnite on 10/1/2009 4:12:55 AM , Rating: 2
I don't think he is a troll, they are far to good looking and intelligent for that.


RE: The Windows era is over.
By Bateluer on 9/30/2009 12:28:28 PM , Rating: 3
Uh no. The PC and Internet have flourished as an open platform, and despite Apple's attempts, it will continue to be an open platform.

And oh, by the way, check your facts. Windows is not an open platform, its a closed source proprietary operating system.


RE: The Windows era is over.
By Larrymon2000 on 9/30/2009 12:54:51 PM , Rating: 2
Closed-source services as a competitor are one thing, but shifting the entire computing industry to having closed standards? You're kidding, right? Only high demand can drive a trend like this. You're telling me your mother or grandmother is going to start paying 1200 bucks for a system, 50 bucks a month for the internet, and then a la carte fees for EVERY application?

You missed the point of the internet: open data.


"Young lady, in this house we obey the laws of thermodynamics!" -- Homer Simpson














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