Microsoft Cuts Ballmer’s Bonus Due to Slow Windows 8 Sales

The board has decided to grant Ballmer only 79 percent of his target bonus

By on October 4th, 2013 17:16 GMT

Microsoft’s outgoing CEO Steve Ballmer has received total payments of $1.25 million (€920,000) in fiscal year 2013, which include a base salary of $697,500 (€513,000) and a bonus of $550,000 (€405,000).

While it’s pretty clear that Ballmer has every reason to be pleased with his salary, it turns out that the company’s board wasn’t so impressed with the recent performance of Windows 8 and the Surface RT.

As a result, Ballmer received only 79 percent of his target bonus, as compared to fiscal year 2012 when he received 91 percent of his compensation, according to ZDNet data.

Here’s what Microsoft’s board mentioned in the fiscal year 2013 proxy statement:

"The company faced challenges due to weakness in the consumer PC market. While the launch of Windows 8 in October 2012 resulted in over 100 million licenses sold, the challenging PC market coupled with the significant product launch costs for Windows 8 and Surface resulted in an 18% decline in Windows Division operating income. Slower than anticipated sales of Surface RT devices and the decision to reduce prices to accelerate sales resulted in a $900 million inventory charge."

As compared to Ballmer, Chief Operating Officer Kevin Turner, Chief Financial Officer Amy Hood, and Office president Kurt Delbene received 100 percent of their bonuses, while Server and Tools chief Satya Nadella was granted 105 percent of his incentive payment.

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