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Failures in mobile space cost Steve Ballmer half his bonus

post #1 of 73
Thread Starter 
Microsoft documents filed with the SEC reveal that CEO Steve Ballmer received only half of the maximum bonus available to him because of the company's struggles in the mobile market.

An annual proxy filing to the SEC by Microsoft revealed that the company's Compensation Committee viewed Ballmer's performance as mixed. Of a bonus worth up to 200 percent of his base salary, Ballmer was awarded his "target bonus" of 100 percent, resulting in annual compensation of $1.34 million. Ballmer's fiscal year 2010 salary was higher than last year, but lower than that of 2008.

Despite the Redmond, Wash., company posting a record $62.5 billion in revenue for fiscal year 2010, which ended on June 30, Ballmer was taken to task for "the unsuccessful launch of the Kin phone; loss of market share in the company's mobile phone business; and the need for the company to pursue innovations to take advantage of new form factors."

Although not specifically mentioned, it's clear that the committee compared Ballmer's performance in the mobile space to Apple CEO Steve Jobs' recent successes. Microsoft took several hits this past year with the early demise of the Kin and significant drops in Windows Mobile market share, while high demand for Apple's iPhone continued to generate substantial profits for the Cupertino, Calif., company.

A Reuters report interprets the Compensation Committee's comments about innovative "form factors" as a reference to the iPad and the tablet market. Millions of iPads have been sold while competitors have scrambled to finish their own tablets. Rumors of a Microsoft tablet being developed under the codename "Courier" were eventually put to rest after a Microsoft VP admitted that the company had "no plans to build such a device at this time." Microsoft and HP announced early this year that they were collaborating on a "slate PC," but HP's purchase of Palm this spring may have disrupted the project.

Shortly after acquiring Palm, HP revealed that it was most interested in WebOS. The company plans to use the OS to power "small form factor web-connected devices."

Undaunted by last year's losses in mobile market share, Microsoft remains confident that the upcoming launch of Windows Phone 7 will turn things around. After Windows Phone 7 was released to manufacturing, Microsoft employees celebrated by holding an awkward funeral parade for the iPhone with signs bragging that the "Windows Phone 7 OS Platform buries the competition."

The Wall Street Journal reported Thursday that Microsoft plans to unveil the Windows Phone 7 smartphone launch lineup on Oct. 11. AT&T, which will be the "initial exclusive carrier" for Windows Phone 7, plans to begin selling the smartphones in early November, sources told the Journal. Three handsets, one each from Samsung, LG, and HTC, are expected to be offered.

Some analysts are skeptical of Microsoft's ability to reverse the downward trend. Gartner predicts that Windows Phone market share will jump from 4.7 percent this year to 5.2 percent in 2011, then slide to just 3.9 percent market share in 2014.
post #2 of 73
And why did he he get the other half for? The 345 groundbreaking kids phones sold?
post #3 of 73
Ballmer has been known to pick the winners.

Oh wait...
post #4 of 73
When it should have cost him his job.

Why the hell is this joker still running the show?
post #5 of 73
The Compensation Committee failed to credit Ballmer for mockingly stomping on employees' iPhones or throwing chairs in conference rooms. It's a sound strategy for gaining marketshare

"Apple should pull the plug on the iPhone."

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post #6 of 73
Quote:
Originally Posted by myapplelove View Post

And why did he he get the other half for? The 345 groundbreaking kids phones sold?

Didn't I read on AI that Microsoft believed they could sell 30 million Windows phones by the end of 2011? Am I remembering this wrong?

"Apple should pull the plug on the iPhone."

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"Apple should pull the plug on the iPhone."

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post #7 of 73
Quote:
Originally Posted by Suddenly Newton View Post

Didn't I read on AI that Microsoft believed they could sell 30 million Windows phones by the end of 2011? Am I remembering this wrong?

http://www.appleinsider.com/articles...s_phone_7.html
post #8 of 73
Quote:
Originally Posted by myapplelove View Post

And why did he he get the other half for? The 345 groundbreaking kids phones sold?

Not to cut the guy any slack, but surely it's because the Windows and Office monopolies continue to rake in $$.
post #9 of 73
Quote:
Originally Posted by AppleInsider View Post

Ballmer was taken to task for "the unsuccessful launch of the Kin phone; loss of market share in the company's mobile phone business; and the need for the company to pursue innovations to take advantage of new form factors."
Some analysts are skeptical of Microsoft's ability to reverse the downward trend.

The only reason Ballmer has a job is Bill Gates doesn't give a crap about Microsoft.
post #10 of 73
He still seems to be eating regularly.
A.k.a. AppleHead on other forums.
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A.k.a. AppleHead on other forums.
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post #11 of 73
Quote:
Originally Posted by Robin Huber View Post

He still seems to be raking in his undeserved salary regularly.

There, I fixed it for you
post #12 of 73
Quote:
Originally Posted by myapplelove View Post

And why did he he get the other half for? The 345 groundbreaking kids phones sold?

My guess would be the $62.5 billion revenue he brought in by keeping the cash cow well fed and watered.

Developing a decent mobile platform is important, probably the most important thing at the moment, but so is maintaining the cash flow that's paying for all the R&D.

Assuming the $1.34M is his pay + bonus, they docked him personally about $670K.
post #13 of 73
Quote:
Originally Posted by AppleInsider View Post

Despite the Redmond, Wash., company posting a record $62.5 billion in revenue for fiscal year 2010, which ended on June 30, Ballmer was taken to task for "the unsuccessful launch of the Kin phone; loss of market share in the company's mobile phone business; and the need for the company to pursue innovations to take advantage of new form factors."

We want a CEO who can protect us from having to pursue innovations, dammit.
post #14 of 73
Who's laughing now?

Better than my Bose, better than my Skullcandy's, listening to Mozart through my LeBron James limited edition PowerBeats by Dre is almost as good as my Sennheisers.
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Better than my Bose, better than my Skullcandy's, listening to Mozart through my LeBron James limited edition PowerBeats by Dre is almost as good as my Sennheisers.
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post #15 of 73
Quote:
Originally Posted by myapplelove View Post

And why did he he get the other half for? The 345 groundbreaking kids phones sold?

Nah, he got it for running Microsoft like another bland Fortune 500 company.

Basically, he was able to guide MSFT stock to track the S&P 500 index over the past five years. Microsoft remains quite profitable. However, the market doesn't seem to be terribly excited about any major growth potential.

Ballmer is a caretaker, not an innovator. He was a fine hatchet man for Gates, but without Billy, his lack of vision became very obvious. He's not an incompetent fool, but one should wonder if the Microsoft board of directors has become complacent.

If I were still a shareholder of MSFT, I would not be inclined to re-elect any of the board members. The company needs real vision and new leadership. It is possible that the company has undergone a shift in corporate culture and that they are content being the status quo.

That's fine by me, but I'd rather invest in SPY rather than MSFT.
post #16 of 73
He gets a bonus?!
bb
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bb
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post #17 of 73
Steve ballmer will say this is round error !
post #18 of 73
certainly they can run a largish bake sale for Steve and get him some of this back.
post #19 of 73
Quote:
An annual proxy filing to the SEC by Microsoft revealed that the company's Compensation Committee viewed Ballmer's performance as mixed. Of a bonus worth up to 200 percent of his base salary, Ballmer was awarded 100 percent, resulting in annual compensation of $1.34 million. Ballmer's fiscal year 2010 salary was higher than last year, but lower than that of 2008.

Despite the Redmond, Wash., company posting a record $62.5 billion in revenue for fiscal year 2010, which ended on June 30, Ballmer was taken to task for "the unsuccessful launch of the Kin phone; loss of market share in the company's mobile phone business; and the need for the company to pursue innovations to take advantage of new form factors." [...]

Undaunted by last year's losses in mobile market share, Microsoft remains confident that the upcoming launch of Windows Phone 7 will turn things around. After Windows Phone 7 was released to manufacturing, Microsoft employees celebrated by holding an awkward funeral parade for the iPhone with signs bragging that the "Windows Phone 7 OS Platform buries the competition."


My congratulations to the members of the Compensation Committee. The funeral march for Windows Phone 7's competitors was the last straw.

Steve Ballmer is a billionnaire founder of Microsoft, but members of the Compensation Committee took a stand to signify their displeasure at the buffonnery that Steve Ballmer brings to his performance as the CEO of Microsoft. Buffonnery is no substitute for a solid performance.

Microsoft is competing not with Apple (a rounding error at 5% world market share), but with Google and its Android OS for mobile internet connected devices. As every company wants to offer smartphones and tablet computers for Christmas, Microsoft has very little to offer to its traditional licensees, HP, Dell, etc. who are likely to popularize the Android OS.

The Microsoft Tablet OS may come too late while the Android OS is ready, willing and free...


post #20 of 73
Quote:
Originally Posted by ouragan View Post

My congratulations to the members of the Compensation Committee. The funeral march for Windows Phone 7's competitors was the last straw.

Steve Ballmer is a billionnaire founder of Microsoft, but members of the Compensation Committee took a stand to signify their displeasure at the buffonnery that Steve Ballmer brings to his performance as the CEO of Microsoft. Buffonnery is no substitute for a solid performance.

Microsoft is competing not with Apple (a rounding error at 5% world market share), but with Google and its Android OS for mobile internet connected devices. As every company wants to offer smartphones and tablet computers for Christmas, Microsoft has very little to offer to its traditional licensees, HP, Dell, etc. who are likely to popularize the Android OS.

The Microsoft Tablet OS may come too late while the Android OS is ready, willing and free...



You seem to be confusing Macs with iOS devices. Microsoft is indeed competing with Apple, ever since Apple laid waste to their entire mobile strategy almost overnight.
post #21 of 73
Microsoft has lost its way. The only thing it does nowadays is keep getting its offshore development centers to crank out obscure technologies to obsolete its own technologies. If not for Windows and Office and maybe xBox it would be the next Sun.
post #22 of 73
Quote:
Originally Posted by myapplelove View Post

And why did he he get the other half for?

Good question. Ironically, Steve Jobs works for a dollar. Screwy world, huh?

Quote:
Originally Posted by raymondinperth View Post

Steve ballmer will say this is round error !

Ballmer IS a round error.
post #23 of 73
MSFT will never compete in the mobile device market. That ship has sailed.

History will show that Microsoft's long inexorable slide toward irrelevance began some years ago. Ballmer isn't really the cause of it. He never had the talent to drive innovation but then again his job didn't require it - his ability extends no further than to milk the cash cow MSFT has become.

The board will eventually realize this and dump this clueless blowhard, but MSFT has already become a pathetic shell of what used to be a technology company. Once they realize they're no longer in the business of creating innovative products (were they ever?), MSFT's board will appoint a CEO who will abandon their unprofitable segments and concentrate on what they do best - large scale systems integration and support. Unfortunately for Microsoft's employees, this new CEO will resort to old reliable slash-and-burn tactics since that's what's in the CEO's best interest.

Look for this new CEO to come from almost any other company... probably not tech. A "turnaround expert" When that happens - run for the exits!

What this means to MSFT's hardware partners isn't pretty either. Dell and HP had better figure out what their future is going to look like too.

MSFT's consumer products, including desktop OS and software will diminish regardless of who's running the company, and it won't all be Apple's fault - Chrome OS, Android, and Open Office will eventually make every Microsoft consumer offering irrelevant. The mobile segment belongs to AAPL - they're probably more concerned about Android than Windows Mobile - and they should be.

The tipping point isn't imminent. It's perhaps two or three years away, but certain nevertheless. The sooner Microsoft recognizes it the better.

Either way, stick a fork in him, Ballmer is done.

Quote:
Ballmer IS a round error.

^^^ and getting rounder by the day :-)
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post #24 of 73
Stupid fat ass not paying attention to what's going on in the world. No wonder he fucked up...couldn't happen to a better guy
post #25 of 73
Quote:
Originally Posted by Firefly7475 View Post

My guess would be the $62.5 billion revenue he brought in by keeping the cash cow well fed and watered.

Developing a decent mobile platform is important, probably the most important thing at the moment, but so is maintaining the cash flow that's paying for all the R&D.

Assuming the $1.34M is his pay + bonus, they docked him personally about $670K.

Not much hard work in maintaining a monopoly... Anything other than that they have failed miserably.
post #26 of 73
Quote:
Originally Posted by ouragan View Post

My congratulations to the members of the Compensation Committee. The funeral march for Windows Phone 7's competitors was the last straw.

Steve Ballmer is a billionnaire founder of Microsoft, but members of the Compensation Committee took a stand to signify their displeasure at the buffonnery that Steve Ballmer brings to his performance as the CEO of Microsoft. Buffonnery is no substitute for a solid performance.

Microsoft is competing not with Apple (a rounding error at 5% world market share), but with Google and its Android OS for mobile internet connected devices. As every company wants to offer smartphones and tablet computers for Christmas, Microsoft has very little to offer to its traditional licensees, HP, Dell, etc. who are likely to popularize the Android OS.

The Microsoft Tablet OS may come too late while the Android OS is ready, willing and free...



I love it, an Android troll ragging on Microsoft on an Apple info website..
post #27 of 73
Quote:
Originally Posted by bloggerblog View Post

He gets a bonus?!

Sure, for having a pulse.
Please don't be insane.
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Please don't be insane.
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post #28 of 73
I'm surprised he only gets $1.3m a year, I has always just assumed it was a lot more than that.
post #29 of 73
Ballmer's over-confidence with arrogance is his own failure to see and pursue innovative ideas. This is his biggest short coming which is a salesman ideology that he can't seem to put down and think more like an executive instead of pushing the next sales pitch.

I sure would like to know what he's smoking to think "windows phone 7 os buries the competition". In what way does it bury the competition? I don't have anything against it, but to confidently say that and put on a show parading the death of something you already said you weren't worried about when it was introduced says a lot about your arrogance and character.

To innovate, you have to look outside your own biased opinions and try the competition out and build from there. Accept failures and improve upon them. Don't overshadow it with dumb arrogance and think because you say it will succeed without any effort in your product it will, because consumers are not dumb and will buy whomever has the better product. On to that I say - let the consumer choose away. Hope your right this time Ballmer, because the axe has a short fall.
post #30 of 73


I love posting this
post #31 of 73
I guess he didn't sweat his uniform enough
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I've accomplished my childhood's dream: My job consists mainly of playing with toys all day long.
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post #32 of 73
Quote:
Originally Posted by Quadra 610 View Post

When it should have cost him his job.

Why the hell is this joker still running the show?

Time he moved to Google to continue his secret crusade to help Apple!
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post #33 of 73
Quote:
Originally Posted by Suddenly Newton View Post

The Compensation Committee failed to credit Ballmer for mockingly stomping on employees' iPhones or throwing chairs in conference rooms. It's a sound strategy for gaining marketshare

The thing that amazed me most was how genuine he seemed about the Courier. This very site was filled with MS and anti Apple trolls extolling it and claiming it would crush iPad as soon as it was available. They went into such details as to why it would too.

To lead on his own flock like that with no such device and no intention of developing such a device was astounding. It must have made the MS fan base want to lynch him I'd have thought. The reasoning behind the lies must have been nothing but FUD or was it? Was it perhaps just so abysmal by comparison to the iPad they simply denied it rather than be humiliated?

Truly amazing. Can anyone imagine what the media would have done to Steve if he had claimed all he did about iPad and then came out and said he was just kidding and it didn't exist?

I'd say fire him but I can't think of a better idiot to stand on the bridge of the SS Microsoft as captain as it slips beneath the waves of time. Billy sure knew when to get in that life boat and row for charity island!
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post #34 of 73
Quote:
Originally Posted by macnyc View Post

Not much hard work in maintaining a monopoly... Anything other than that they have failed miserably.

Yeah, that's my view too, I would really think it would almost impossible for even an incompetent individual to hurt MS's revenues at this stage.

On the other hand you see some colossal errors in the mobile space, and I mean colossal, such strategic errors that anyone in this forum would see: Trying a desktop os strategy on the mobile space, fragmentation of the various os'es, long development times with poor results. What ms should have done instead is, and it doesn't take a genius to come up with this plan, they could have pulled a fast one on both google and apple, open sourced their core mobile os to some extent, put bing there by default, suck the hell up to developers and offer them the best deals for apps and partner up with a couple of major hardware players to provide no more than 2-3 exclusive handsets for MS. Result? You get a large % of the geeks back to your platform, you get exclusive control of hardware so you fine tune your os, you finally get some revenue stream in from ads from bing, you get some devs on your side, you assure compatibility with screen sizes, layouts etc. to better your os, you attract some clout and hype with each handset release, you assume a pretty uniform and stable platform for developers...

Now, how effing hard is for someone to realize this when the apple side has spilled the beans on what a mobile strategy should be, and not this year, nor the year before, but three years ago.
post #35 of 73
Quote:
Originally Posted by digitalclips View Post

The thing that amazed me most was how genuine he seemed about the Courier. This very site was filled with MS and anti Apple trolls extolling it and claiming it would crush iPad as soon as it was available. They went into such details as to why it would too.

To lead on his own flock like that with no such device and no intention of developing such a device was astounding. It must have made the MS fan base want to lynch him I'd have thought. The reasoning behind the lies must have been nothing but FUD or was it? Was it perhaps just so abysmal by comparison to the iPad they simply denied it rather than be humiliated?

Truly amazing. Can anyone imagine what the media would have done to Steve if he had claimed all he did about iPad and then came out and said he was just kidding and it didn't exist?

I'd say fire him but I can't think of a better idiot to stand on the bridge of the SS Microsoft as captain as it slips beneath the waves of time. Billy sure knew when to get in that life boat and row for charity island!

If it were Steve they would have savaged him for the next 10-15 years for sure. But since you are referring to the ms fanbase, I would wager that most people with half a brain have abandoned it years ago or are begrudgingly using ms products for the lack of alternatives. I also think that they 've grown so defensive for being the butt of jokes for so long (and for a good reason) that they 've grown morose and fail to exert any positive pressure to the company. Of course that says a lot about corporate culture at MS too, whoever pushed for the courier and new damn well how lacking the project had been should have plainly come up and said, boss(es) it's nowhere near completion, we are going to embarrass ourselves yet again.

But we are talking here about a company that has made it historically a strategy to announce vapourware and fud campaings, it runs in their blood.

Just a short story on how obtuse and resistant to common sense this company is: A long time ago, when I were using their products I was also commenting on the internet explorer dev blog. It had struck me as colossally stupid that cmd + s (or control s in pcs) wouldn't save a page but you would instead have to click on save as which had no shortcut. I mentioned this on the blog and the response I got was that a save function would signify saving the page on the server which couldn't happen, hence only the save as function was enabled which had no shortcut since ctrl + s was for saving. This to me spoke volumes for the mentality of this company.
post #36 of 73
Shorting a guy like him a million, heck, 5 million, is not going to inspire him to perform. I mean, what is he worth? 20 billion plus, right? To get a fire under him, they should get the lawyers to claw back his options. That will get him motivated or he will leave.
(By the way, anytime the MS board would like me to consult for them, please contact me though this website, and we can arrange a fee.)
post #37 of 73
Quote:
Originally Posted by myapplelove View Post

If it were Steve they would have savaged him for the next 10-15 years for sure. But since you are referring to the ms fanbase, I would wager that most people with half a brain have abandoned it years ago or are begrudgingly using ms products for the lack of alternatives. I also think that they 've grown so defensive for being the butt of jokes for so long (and for a good reason) that they 've grown morose and fail to exert any positive pressure to the company. Of course that says a lot about corporate culture at MS too, whoever pushed for the courier and new damn well how lacking the project had been should have plainly come up and said, boss(es) it's nowhere near completion, we are going to embarrass ourselves yet again.

But we are talking here about a company that has made it historically a strategy to announce vapourware and fud campaings, it runs in their blood.

Just a short story on how obtuse and resistant to common sense this company is: A long time ago, when I were using their products I was also commenting on the internet explorer dev blog. It had struck me as colossally stupid that cmd + s (or control s in pcs) wouldn't save a page but you would instead have to click on save as which had no shortcut. I mentioned this on the blog and the response I got was that a save function would signify saving the page on the server which couldn't happen, hence only the save as function was enabled which had no shortcut since ctrl + s was for saving. This to me spoke volumes for the mentality of this company.

The save function anecdote suddenly made me see something. MS has Post Office mentality. I recently redirected my mail to our summer home in norther NH from here in FL. Just before we left NH we went on line and cancelled the redirect. After several weeks of no mail and several trips to the local PO we discovered our mail was being sent up to NH and then back to FL and then back up to NH and so ... an endless loop. On asking why I was told we had not informed the correct 'end' we had only told NH about the change.
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post #38 of 73
haha, very funny (and painfully unfunny I am sure for you guys to sort it out finally), you have to marvel at this kind of circular "logic".
post #39 of 73
Quote:
Originally Posted by myapplelove View Post

And why did he he get the other half for? The 345 groundbreaking kids phones sold?

Maybe for being the CEO of a company that posted record revenues ($62 billion)? Just a wild guess,,,

It's actually a good thing that MS is showing accountability to the shareholders and in a roundabout way admitting their failures in the marketplace this year.

It's also interesting to see Winmob7 in action, with a completely different approach to the user interface than MS usually does and that fact they've genuinely started from the ground up - cut/copy/paste for example is not available.

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Do not overrate what you have received, nor envy others.
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post #40 of 73
Quote:
Originally Posted by Zoolook View Post

Maybe for being the CEO of a company that posted record revenues ($62 billion)? Just a wild guess,,,

It's actually a good thing that MS is showing accountability to the shareholders and in a roundabout way admitting their failures in the marketplace this year.

It's also interesting to see Winmob7 in action, with a completely different approach to the user interface than MS usually does and that fact they've genuinely started from the ground up - cut/copy/paste for example is not available.

I think if you look at the wide view of MS's financials over say twenty years rather than looking at a close up view you would see why share holders are not happy. They are on steep and slippery slope. It is easily explained too. MS have been denied the ability to rip off other's innovations and prevented from playing the bully this last decade and since they never actually originated anything they are simply clueless what to do. Add to that an inertia and post office mentality and a visionless boob of a leader who is too stupid to even know he is a boob. There is no way to prevent the ship eventually sinking and just watch as share holders abandon that ship. Like ice melting this will accelerate.
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