Ballmer loses half his bonus over Microsoft's mobile woes

Ballmer loses half his bonus over Microsoft's mobile woes
Steve Ballmer, the burly CEO of Microsoft, has been punished by the Compensation Committee over the diminishing market share of Windows Mobile, and the KIN phone disaster. He has been awarded half his possible bonus of 200% the base salary, to the "target" 100%, resulting in $1.34 million annual compensation for the fiscal year ending June 2010.

A lot of Silicon Valley executives would just smile like Mona Lisa at this bonus, considering Microsoft's profit margins. The diminishing market share of the aging Windows Mobile OS (halved to 5% in just a year), and the costly experiment that has been the KIN phone took their toll on Ballmer's compensation.

With that out of the way, noone is saying that Microsoft should be underestimated in the mobile world. It might have missed a generation, trumped by Apple and Google, but the unveiling of Windows Phone 7 is set to take place on October 11th. There is a central event in New York, but the actual presentation is rumored to be at satellite events elsewhere, presumably in London on the same date.

The launch event will be seeing AT&T take centerstage in the marketing effort as well, as the initial exclusive carrier for WP7. Rumors are that AT&T has ordered 8 million WP7 handsets for the initial launch set four weeks later, on November 8th. The launch portfolio will include one smartphone from each major partner for the fledgling Microsoft's mobile OS - LG, HTC and Samsung. Microsoft has also been gearing up for the launch, updating its Zune, Xbox Live, Hotmail and Office Mobile franchises for the mobile experience.

source:  AppleInsider



1. Droid X Doug unregistered

AT&T ordering 8 million WP7 handsets? Is Microsoft paying for the order? I wonder how long before the price on contract drops to $0?

2. JeffdaBeat unregistered

This is what happens when your visionary leaves the company and you don't find someone just as good to replace him. Microsoft got too comfortable at the top and started producing come really shitty products. I think today's tech boomers, Google and Apple, won't pull something like this, although I think Google needs to set some hardware standards for their OS. WP7 will be a huge test. We haven't heard anything out of Windows Mobile for a year and a half or so. This will determine whether or not there is actually room for another OS to be successful. Microsoft has the money, but are people too caught up in their iPhones and Android Phones to really look up? Windows Phone 7 will also determine whether Palm has a shot even with a parent company that has a good some of money. If WP7 fails, I think we can assume Palm has no chance either...

5. iHateCrapple

Posts: 734; Member since: Feb 12, 2010


6. thatdude1 unregistered

@jeffdabeat: Google and Apple are NOT tech boomers. Apple cannot get the hardware right and Googles Android is too immature.

7. lol unregistered

Actually Google does set a standard. Notice how some of the original weaker Droid phones don't have the 2.2 update yet?

3. zerglisk

Posts: 544; Member since: Feb 09, 2010

I just hope microsoft will make WP7 line up very cheap when they are announced, thus making other makers, such as hTC, Samsung, Nokia to drop their phone prices... HAHA win for the consumers!

4. iHateCrapple

Posts: 734; Member since: Feb 12, 2010

Ballmer is creepy!

Latest Stories

This copy is for your personal, non-commercial use only. You can order presentation-ready copies for distribution to your colleagues, clients or customers at or use the Reprints & Permissions tool that appears at the bottom of each web page. Visit for samples and additional information.