Microsoft Corp.'s (NASDAQ: MSFT) CEO, Steve Ballmer, received what could be considered a mere pittance of a paycheck for the world's largest software company in its most recent fiscal year. In Microsoft's 2007 fiscal period, profit at the company rose about $14 billion on over $50 billion in sales. Ballmer's pay for leading the company during that period? $1.3 million.
Yes, in a salary that would make most hedge fund managers wince, Ballmer scored a $620,000 in salary and another $650,000 in bonus pay. While stock options are generally the most prudent way to pay some executives these days (to the tune of tens of millions of shares), the tiny pay Ballmer received sounds like a mistake until once reads that it is true.
In perfect employee fashion, Microsoft also matched Ballmer's 401k contributions with $6,750 in matching funds as well as spending $3,000 on life insurance and athletic club memberships for the CEO. Even a billion-dollar paycheck would be a bargain for a company whose profit reached $14 billion in the latest fiscal year, although Ballmer received a fraction of that amount.
Now, why Microsoft shares has hovered in la-la-land during one of the most profitable years in the company's 30-year history is the largest question mark. My guess? Google, Inc. (NASDAQ: GOOG) is stealing the thunder from every tech company with its constantly expanding revenue every quarter.
Microsoft's (MSFT) Ballmer receives $1.3 million pay package
Posted Sep 25th 2007 11:46AM by Brian White
Filed under: Management, Microsoft (MSFT)
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