Microsoft revealed on Monday that CEO Steve Ballmer has been awarded a 2% pay increase.
The increase was revealed in Microsoft’s recent annual proxy statement filed with the Securities and Exchange Commission (SEC). Todd Bishop at GeekWire.com spotted the filing and notes that Ballmer received an increase in pay to $682,500 for the fiscal year of 2011, up around 2% from his pervious pay in 2010. Ballmer also netted an identical bonus to 2010, leaving his total compensation to around $1.365 million.
Microsoft’s incentive plans for Ballmer indicate that he could have received a 200% bonus but the filing revealed that Ballmer managed to secure a 100% bonus of his target award. Ballmer received the same amount in fiscal 2010. Ballmer receives a cash bonus as he already owns 3.95% of Microsoft. Ballmer’s significant ties to Microsoft’s performance and growth mean that his overall compensation is significantly less than other CEOs in similar roles. Microsoft recognized this in their filing with the SEC.
“As the principal leader of Microsoft, Mr. Ballmer focuses on building our long-term success, and, as a significant shareholder, his personal wealth is tied directly to Microsoft’s value,” the filing says. “While the Committee and the Board believe Mr. Ballmer is underpaid for his role and performance, they have accepted his request.”
Ballmer has faced a tough time over the past year, following calls for him to step down. Glassdoor.com, which allows employees to anonymously rates their employer, reports that 55 percent of employees disapprove of Ballmer and 45 percent approve, based on 1,691 ratings. An influential hedge fund manager called for Ballmer to quit in May. Microsoft’s board of directors supported Ballmer following the calls for him to quit. Microsoft’s nine-person board, including Chairman and co-founder Bill Gates, supported Ballmer at the end of May. Microsoft’s stock has suffered since Ballmer has been in charge but most analysts and investors feel it would be a hard task to find someone adequate to replace him.
Ballmer is due to speak at Dell World 2011 on October 14. Ballmer will likely detail the company’s cloud efforts with Azure but he could also discuss further Windows 8 details. Ballmer’s appearance at Dell World is expected to be his first public speech since the company’s BUILD conference in mid-September.