Microsoft CEO Steve Ballmer received compensation in fiscal 2010 valued at $1.35 million, according to documents filed Thursday with the U.S. Securities and Exchange Commission. His total package is up six per cent from 2009, when he received compensation valued at $1.28 million.
Ballmer received a $670,000 salary and a cash bonus of $670,000. His other compensation and perquisites totaled $11,121, which is attributed to a 401k company match and imputed income related to Microsoft’s benefits program.
He did not receive any stock options in 2010 -- nor in 2009 or 2008.
The company, meanwhile, grew revenue and profits by seven per cent and 29 per cent, respectively, in its 2010 fiscal year, which ended June 30. Revenue came in at $62.5 billion, up from $58.4 billion in 2009. Net income hit $18.8 billion, up from $14.6 billion in the prior year.
The decision to decline stock and option awards is Ballmer’s, according to Microsoft’s proxy statement.
“While the Compensation Committee believes Mr. Ballmer is underpaid for his role and performance, it has accepted his recommendation to continue with Microsoft’s historical practice for setting his total compensation opportunity to exclude any long-term equity compensation award,” the company states.
Ballmer’s bonus target was $670,000, which he met. He was eligible, however, to receive a bonus equivalent to 200 per cent of his base salary for the fiscal year, or $1.3 million.
The company's compensation committee weighed a number of factors to appraise Ballmer’s performance and determine his bonus, including: Microsoft’s strong financial year; continued expense management; successful product launches including Windows 7, Office 2010, Bing, Windows Server, and SQL Server; cloud computing progress in areas such as Azure, Office Web Apps and active gaming (Kinect).
On the negative side, the compensation committee weighed “the unsuccessful launch of the Kin phone; loss of market share in the company’s mobile phone business; and the need for the Company to pursue innovations to take advantage of new form factors.”
Ballmer’s total pay is calculated using data supplied in a proxy statement filed with the SEC on Sept. 30. The following figures are taken from the summary compensation table: salary, bonus, and all other compensation.
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