On Tuesday, the latest Proxy statement filed by Microsoft to the Securities and Exchange Commission for the fiscal year 2012 was released, providing us with a glimpse at how the company’s “named executive officers” were compensated and graded by the board of directors.
For one, out of the entire lineup of executives, CEO Steve Ballmer was the least compensated, receiving an “incentive plan award” of $620,000 for fiscal 2012; 91% of his eligible target award. When added to his base salary each year of $685,000 and all other compensation, he received a total of $1,318,128. By choice, Ballmer received no equity.
Steven Sinofsky, President of the Windows and Windows Live Division, received an incentive award of $7.65 million, which is 90% of his possible incentive award. Sinofsky’s total compensation is $8,583,732. Sinofsky and Ballmer were praised by the board of directors for the completion of Windows 8, Windows 7 enterprise adoption, the Surface, and IE market share growth, but were reprimanded over the European browser ballot issue.
The highest paid executive was Kevin Turner, the company’s Chief Executive Officer, who received a total of $10,683,671 in compensation. Kurt DelBene, President of the Office Division received a total of $7,906,725, and Peter Klein, Chief Financial Officer, received $5,108,836 in total compensation.