Slow Windows Phone, tablet progress hurts Microsoft CEO bonus

Slow Windows Phone, tablet progress hurts Microsoft CEO bonus
Microsoft has had a strong fiscal year overall, but you wouldn’t know this from looking at phone and tablet sales alone. And Microsoft’s CEO Steve Ballmer felt the company’s board sentiment about this as he got only half of the maximum yearly bonus as Windows Phone handsets were slower than expected, tablets with the new Metro UI were still in the future and Windows sales slipped 2%.

Ballmer took a salary of $682,000, with a bonus doubling it to nearly $1.4 million. But the bonus could triple the base salary number had the chief executive successfully pulled the Windows Phone launch. Ballmer is one of the lowest-paid CEOs in the industry as the average chief executive gets $15.8 million.

He does however hold 3.95% of Microsoft’s stock, which is valued at $14 billion stock making him the world’s 33rd richest according to Forbes. So finally, the bonus doesn’t mean that much in pure financial terms, but it delivers a message, an evaluation of his performance.

One excerpt of the board’s decision summarizes Microsoft’s yearly progress better than any official PR statement would. Here are the reasons for Ballmer getting a bonus, but not the maximum one:

- successful product launches including Kinect for Xbox and Office 365, 
- enhancements to Windows Azure and Bing; 
- continued progress positioning the company as a leader in the cloud and cloud-based infrastructure; 
- key partnerships with Facebook and Nokia; 
- significant progress in development of the next generation of Windows; 
- work toward the successful acquisition of Skype; 
- lower than expected initial sales of Windows Phone 7; 
- the 2% decline in revenue for the Windows and Windows Live Division; 
- the need for further progress in new form factors.

Despite the slow start of Windows Phone, Ballmer inked deals with Nokia and Skype, both strong aces in the company’s mobile foray. How would you rate the extravagant CEO’s performance?

source: SEC via AllThingsD
Image credit: UPI



20. snowgator

Posts: 3630; Member since: Jan 19, 2011

2012 - big year for Windows Phones. But either way, Microsoft is still a growing company and diverse in it's dealings. That does reflect well on his overall leadership, even if sales of the OS on Tablets and Phones have been crap. Compare it to HP, and any bonus is better than getting canned. He ain't poor.

19. InspectorGadget80 unregistered

CEO'S doesn't DESERVE BONUS only their workers deserve that kind of money.

18. lubba

Posts: 1313; Member since: Jan 17, 2011

You're seeing as how PA wants you to see. Personally i admire his bold new steps. He may not have steve jobs personality but so far haven't seen anyone call a jerk yet.

17. Guru unregistered

It's all about costs and hardware - just do a comparison. I wanted the Sprint Windows phone but it is (1) about the most expensive phone and (2) there is only 1 - no choice. This is about as bad a marketing strategy as I have ever seen!

16. som

Posts: 768; Member since: Nov 10, 2009

Why is a billionaire wanted more bonus money and the poor is getting poorer buying Windows Phone.

15. Luuthian

Posts: 332; Member since: Sep 09, 2011

Microsoft just isn't cool anymore, and I don't doubt a small portion of that effect comes from Ballmer's looks and personality. Not to say he's an ass or anything, but the guy hits you a hardened executive grandpa. He doesn't have any of the colorful panache Jobs is known for. It doesn't help that the OS was neutered before Mango came along, and the platform barely has any phones on the market to speak of. Where was all the advertising too? I'm enjoying my WP7 Focus now that I've got Mango, finally, but it's impossible not to admit that MS has dropped the ball here and needs a serious reboot.

14. Watcher unregistered

Ballmer face does have an effect on impression of the product and microsoft branding.

13. Mooooo

Posts: 212; Member since: Aug 27, 2011

For those about to rock We salute you!

9. androapplephone

Posts: 56; Member since: Oct 04, 2011

Maybe it's time for a new CEO. Or bill gates please come back

8. LTE lover unregistered

Well said phullofphil I think that is a good point I have noticed that about Microsoft windows phones also

5. Phullofphil

Posts: 1846; Member since: Feb 10, 2009

It sucks windows phone has not been doing better it is a great OS. I guess a great OS does not mean succes these days(aka hp webOS) I really thi k one part of the reason is that android and evin apple but mostly android right now until the next apple launch has handsets with the most amazing hardware tech. That goes not only for LTE 4g support but android is always coming out with the latest posesable in tech like duel core processors running about as fast as they can that are packed with the best gpu's, along with the best touch screens and LCD screens. It does not seem to me Microsoft ever used the best available tech when it came to there mobile phones going back to windows mobile. I mean they had resistive touch screens all the way up to the likes of the omnia 2. Which came out the same time that the first Verizon moto droid came out. I really think people really buy into the hard wear part of a smartphone just as much as the OS. It sucks kinda cause you buy a top best android and it's only the top for a couple months then another one comes out this better. But people seem to like it. My personal itch to be scratched right now is Verizon's 4g LTE and windows phone don't have one. As a matter of fact I love apple iPhones but if the iPhone 5 does not have LTE for Verizon I am scipping it this year. Which in the big picture is no big deal cause there is super fast and nice android phones coming out or already out that will satisfy my needs. I still have a belief although dwindling one that windows phone will catch up and be a big player in the phones in the ne'er future. Maybe up to two years from no anyway. But they better be ready for quad core processing monsters that are sure to be common by then. After that I am actually curous the direction of the processors. Kinda like desktop computers. There is eight core computers and some right now but can a mobile phone handle that for the battery and would it need it. Whatever happens it going to be a fun ride for us the consumer because there is a lot of money to be made to the winners.

10. androapplephone

Posts: 56; Member since: Oct 04, 2011

I also agree about how windows mobile have utilized hardware tech has always kind been a step behind

11. androapplephone

Posts: 56; Member since: Oct 04, 2011

But I am also exited to see what kind of power these small little computers will be like in two well heck fifty or a hundred years from now. I wonder if smartphones will even look at all the Sam or maybe just a complete holographic phone that just a piers in your hand coming from a little tine device that fits in your palm

3. 1701nino unregistered

What a beautiful man :D:D:D

1. Sniggly

Posts: 7305; Member since: Dec 05, 2009

Why does every picture of Steve Ballmer I've seen give me the feeling that he's a giant flaming asshole? I mean, seriously. Every time I see him I want to punch him in the goddamn face.

2. Phullofphil

Posts: 1846; Member since: Feb 10, 2009

Lo efin l

4. Sniggly

Posts: 7305; Member since: Dec 05, 2009

I am really dead serious. Every time I look at his face, I know, I just know, that if he were standing in front of me I would just haul back and slug him right in the nose. And now that I went and watched some (retrospectively hilarious) videos of Ballmer poo pooing Android as "words on paper" that feeling has increased, and is joined by an irresistible urge to kick him in the nuts for good measure.

6. Phullofphil

Posts: 1846; Member since: Feb 10, 2009

That old man I bet could through down pretty good. He does not look like no lazy slouch. I would like to see him in a boxing match with well not Steve jobs for verious reasons but maybe one of the CEOs from google, or better yet any CEO out there I bet he could be the toughest one alive. Atliest at the initial staredown. Bill gates would wet himself

7. Sniggly

Posts: 7305; Member since: Dec 05, 2009

LOL. "Celebrity/CEO Boxing Match" should be the next big reality show. :D

12. iKingTrust

Posts: 716; Member since: Jul 27, 2011


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