What do you get for those who have everything? Well, according to a proxy filing, Microsoft is paying salaries of $616,667 to Bill Gates and Steve Ballmer. This was actually a 2.8% increase over the past year. Although, the bonuses were only a relatively modest $350,000.
In light of the fact that these guys are multi-billionaires, it is amazing that they are still on payroll.
Something else that is comical: Ballmer got $6,600 in matching contributions for his 401(k) and flexible benefits of $2,882. Gates received flexible benefits of $2,112.
I know a variety of founder-CEOs who take no salaries (or nominal salaries). Or, take a look at the co-founders of Google. Their compensation is $1.
Looking at the proxy, Gates owns 957,499,336 shares of Microsoft and Ballmer has 408,252,990 shares.
Shouldn't that be enough?
Tom Taulli is the author of various books, including the Complete M&A Handbook and operates InvestorOffering.com.
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Reader Comments (Page 1 of 1)
10-04-2006 @ 3:24PM
Dick Brubaker said...
Gates and Ballmer earned their $. If you don't like it, sell your shares or don't buy their products.
10-04-2006 @ 5:10PM
Jim Souders said...
These are simple tax benefits avaailable to all taxpayers (rich or poor). I suppose you think they also shouldn't take tax exemptions for thier children, deduct property taxes or mortage interest from thier tax returns?
Also, you mention founder-CEO's (although Balmer is not a founder) who take no salary. I would argue a lot more do than don't and that their salaries and bonus's are modest for the size of company they run.
I would agree they should be compensated in line with the compay's poor perfromance in the stock market for the last six years. So, for that reason maybe the salary & bonus is to high, but the 401K or flexible benefits are not the issue.
10-04-2006 @ 6:56PM
clifford scott said...
I am still showing a loss on MSFT stock which I purchased some years ago. My current basis is $35.6l after splits. I do appeciate the recent stock buy back. However, I am hoping that Bill and Greg will reward longtime loyal stockholders by raising the dividend. Even a little would help.
Regards, Clifford W. Scott
10-18-2006 @ 5:28PM
Alice TeKolste said...
I agree with Clifford Scott. It would be nice if Microsoft would pay some dividends. I retain about 2/3rds of what I originally invested. I do not begrudge Gates and Balmer benefiting from their business acumen---Gates uses his money to do a lot of good work around the world via his foundation---but some of us investers should at least get our money back. I do not know what Balmer does with his
share of largess.
10-05-2006 @ 4:44PM
Dick Bartlett said...
Gates and Ballmer work for the company. Their stock holdings are not relevant. They are paid a heck of a lot less than CEO's and Chairmen of most other companys. If you want to jump on someone, how about the Execs at some of the big companys who are paid millions in salary and don't accomplish anything. I'm in Microsoft for the long haul and it has made me money.