Failures in mobile space cost Steve Ballmer half his bonus

Posted:
in iPhone edited January 2014
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.
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Comments

  • Reply 1 of 72
    And why did he he get the other half for? The 345 groundbreaking kids phones sold?
  • Reply 2 of 72
    eriamjheriamjh Posts: 1,134member
    Ballmer has been known to pick the winners.



    Oh wait...
  • Reply 3 of 72
    When it should have cost him his job.



    Why the hell is this joker still running the show?
  • Reply 4 of 72
    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
  • Reply 5 of 72
    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?
  • Reply 6 of 72
    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
  • Reply 7 of 72
    ronboronbo Posts: 669member
    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 $$.
  • Reply 8 of 72
    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.
  • Reply 9 of 72
    He still seems to be eating regularly.
  • Reply 10 of 72
    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
  • Reply 11 of 72
    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.
  • Reply 12 of 72
    quinneyquinney Posts: 2,525member
    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.
  • Reply 13 of 72
    hill60hill60 Posts: 6,991member
    Who's laughing now?



  • Reply 14 of 72
    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.
  • Reply 15 of 72
    He gets a bonus?!
  • Reply 16 of 72
    Steve ballmer will say this is round error !
  • Reply 17 of 72
    certainly they can run a largish bake sale for Steve and get him some of this back.
  • Reply 18 of 72
    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...





  • Reply 19 of 72
    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.
  • Reply 20 of 72
    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.
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