Microsoft’s current CEO Steve Ballmer got only 79% of his total eligible bonus set for him by the board due to the slow growth in Windows 8 and Surface RT write off. The information was revealed in the proxy statement filed by Microsoft yesterday.
The fiscal 2013 proxy statement gave the following reason on Ballmer’s bonus:
“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.”
Steve Ballmer received a total of $1.26 million in fiscal 2013 which includes a base salary of $697,500 and a bonus of $550,000. Even though CEO was not able to earn his full bonus, no.of other VPs including Chief Operating Officer Kevin Turner, Chief Financial Officer Amy Hood, Office president Kurt Delbene, Server and Tools chief Satya Nadella received their full bonus amounts.