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