Microsoft Cuts Executive Pay

Microsoft’s top executives earned less in annual pay and awards throughout the fiscal year 2009, the first year ever for Microsoft to have posted a decline in annual revenue. Despite the usual strength of Microsoft, the technology giant has found itself struggling under the weight of the sagging economy.
 
According to Microsoft, the fiscal year ended in June saw sales fall 3 percent to $58.4 billion, the company’s first-ever drop in revenue. In response to this, Microsoft has announced that it will reduce spending by $3 billion compared to its original fiscal 2009 spending plan, highlighting that Microsoft will take the path that many other companies have taken to become more successful.
 
Microsoft’s compensation committee believes that CEO Steve Ballmer is underpaid, but that did not stop Microsoft from cutting his total compensation to $1.28 million, down from $1.35 million in fiscal 2008. However, Ballmer still holds on to 4.8 percent of the company’s common shares, a holding second to only Bill Gates among the company’s executives.

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