Steve Ballmer scores 79% of his 2013 bonus due to Windows 8 and Surface woes

Microsoft CEO Steve Ballmer

Microsoft CEO Steve Ballmer isn’t getting 100% of his 2013 bonus, as the SEC revealed Microsoft’s fiscal 2013 proxy statement. Thanks to the 18% decline in the Windows Division operating income and the $900 million dollar Surface inventory charge, CEO Steve Ballmer will only get 79% of his 2013 “incentive plan award.”

“The company faced challenges due to weakness in the consumer PC market. While the launch of Windows 8 in October 2012 resulted in over 100 million licenses sold, the challenging PC market coupled with the significant product launch costs for Windows 8 and Surface resulted in an 18% decline in Windows Division operating income. Slower than anticipated sales of Surface RT devices and the decision to reduce prices to accelerate sales resulted in a $900 million inventory charge,” the filing mentioned.

During fiscal 2013, CEO Steve Ballmer received a base salary of $697,500 and a bonus of $550,000, which totaled $1.26 million. His bonus would have been more since he only scored 79% of it. Ballmer actually received 91% of his bonus during fiscal 2012.

Other Microsoft executives, such as Chief Operating Officer Kevin Turner; Chief Financial Officer Amy Hood; and Office President Kurt Delbene received 100% of their bonus. Server and Tools chief Satya Nadella actually earned 105% of his bonus, due to the high performance of his division.

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