Microsoft Corp. CEO Steve Ballmer'spay package fell 4 percent after his bonus was trimmed, partly due toslower-than-planned progress in the software company's online business and adrop in revenue at its Windows division.
Ballmer's pay dropped to $1.3 million from $1.4 million inMicrosoft's latest fiscal year through June, according to an Associated Pressreview of a securities filing made Tuesday.
Ballmer, 56, got a performance-related bonus of $620,000,down from $682,500. His salary was little changed at $685,000.
All other compensation, which included company contributionsto a 401(k) retirement plan, rose 10 percent to $13,128.
Ballmer voluntarily did not receive any stock awards, thesame as a year ago.
His bonus was 91 percent of the target. Some factors consideredby the board included a 3 percent decline in revenue for the Windows divisionand "slower than planned progress" at Microsoft's online servicesdivision, which includes the Bing search engine.
The board also noted the Windows division's failure to providea browser-choice screen on some PCs in Europe as required by a 2009 deal withthe European Commission, the European Union's executive body. Microsoft hadagreed to offer European users a choice of rival Web software and in return,the commission dropped antitrust charges against the company.
In July, however, the commission said it was opening aninvestigation into whether Microsoft had kept the commitments made in the deal,and warned that penalties for non-compliance would be "severe."Microsoft cited a "technical error" for the lack of a browser-choicescreen on some PCs, apologized and said it was taking steps to remedy theproblem.
On the plus side, the board noted that Microsoft generated$31.6 billion in cash flow from operations, an increase of 17 percent over theprior fiscal year.
Microsoft plans to roll out its latest operating system,Windows 8, later this month. It is also preparing to launch a tablet made torun on its touch-enabled operating system, Surface.
Ballmer's pay is far below CEOs at peer companies includedin the Dow Jones industrial average and other technology companies, the filingsaid.
But it noted his personal wealth is tied directly toMicrosoft's value. The filing said Ballmer owns 333.3 million shares. As ofTuesday's closing stock price, the stake is worth $9.76 billion.
Steven Sinofsky, president of Windows, was the otherexecutive who did not receive all of his target bonus. Sinofsky's bonus was$7.65 million, which was 90 percent of the target. His performance review alsoincluded mention of the oversight in Europe and the decline in Windows divisionrevenue.
Sinofsky's pay package still rose 19 percent to $8.6 millionfrom $7.2 million a year ago. His salary grew 1 percent to $658,333, while hisbonus grew 21 percent to $1.5 million and the value of stock awards were 21percent greater than a year ago, calculated at $6.4 million.
The Associated Press' calculation isolates the value thecompany's board placed on the executive's total compensation package in the lastfiscal year. It includes salary, bonus, performance-related bonuses, perks,above-market returns on deferred compensation and the estimated value of stockoptions and awards granted.
The calculation doesn't include changes in the present valueof pension benefits. And they sometimes differ from the totals that companieslist in the summary compensation table of proxy statements filed with theSecurities and Exchange Commission. The statements to the SEC reflectaccounting charges taken for the executive's compensation in the previousfiscal year.