Microsoft to pay execs who stay, pay those culled during reorg turmoil
Awards $60M to 8 execs on the same day that board okays retention payments
Computerworld - Microsoft handed out nearly $60 million in stock grants to eight executives on the same day it filed papers with the U.S. Securities and Exchange Commission (SEC) announcing that the board had authorized special incentives to keep senior management from jumping ship.
The awards, which ranged between 47,000 and nearly 600,000 shares, held a paper value of between $1.6 million and $19.9 million as of Friday's closing price.
The executives who received the stock grants were Kevin Turner, COO; Brad Smith, chief counsel; Eric Rudder, who heads the company's advanced strategy and research group; Tami Reller, marketing chief; Amy Hood, the firm's CFO; Lisa Brummel, its top human resources executive; Frank Brod, chief accounting officer; and Tony Bates, who now leads business development and evangelism at the Redmond, Wash. company.
Turner scored the largest grant of almost 600,000 shares, worth $19.9 million as of Friday, while Smith and Bates received the second- and third-largest awards of 464,000 and 225,000 shares, valued at $15.5 million and $7.5 million, respectively.
All eight executives received the stock grants on Sept. 19, the day that Microsoft's SEC filing said the board of directors had approved special retention stock grants. The new award plan took effect the same day.
The special awards are intended to ensure "continuity of key leaders during the transition to a new chief executive officer" and preserve the company's "competitive position by enhancing retention of key executives with critical skills of strategic importance," Microsoft's filing read.
Microsoft's current CEO, Steve Ballmer, announced last month that he would retire before Sept. 2014, after the technology giant selects a new chief executive.
The documents detailing the awards and the retention plan were made public by the SEC on Sept. 23.
It wasn't clear from the SEC filings -- either the announcement of the retention awards or the individual grants to Johnson, Smith, Bates and the others -- whether the newest stock grants were part of the move to hold onto the executives or simply standard awards given to its top tier.
But the grants fit the retention requirements in that their vesting periods exceeded the 30-month minimum: All the awards will vest over either a three- or four-year span. And the same-day retention bonus filing and the awards themselves was a good clue that, at the very least, some of the stock grants stemmed from the new rules.
- Microsoft ordered to turn over customer data stored in the cloud
- Chinese officials seize Microsoft PCs, emails, financial info in antitrust probe
- Chinese regulators target Microsoft for office visits
- Layoffs cool Microsoft employees' opinion of CEO Satya Nadella
- How Microsoft's CEO sees growth for Windows Phone and Lumia
- Microsoft wants you to forget Windows 8
- Microsoft again writes off Surface inventory, renews profitability doubts
- 'Nadella Effect' makes Ballmer $2.8B richer
- Microsoft reveals bankruptcy of devices strategy by dumping Nokia feature phones
- Microsoft may drag out layoffs for a year
- Aberdeen Group: Marketing Analytics for Manufacturing: Forging Customer Insights There are no recalls for poor marketing. Manufacturers need to get their customer intelligence and messaging right the first time. Learn how.
- The Brave New World of Customer-Centric Manufacturing The Unique Opportunity for Manufacturers to Better Understand their Consumers
- See the Possibilities Utilizing Data Visualization Do you simply want to collect data, or do you want to derive business insights from it? What if you could quickly and...
- SANS: Next-Generation Datacenters = Next-Generation Security This whitepaper takes a look at some new technology that may allow security teams to implement more flexible and capable protection models in...
- Is SQL Server AlwaysOn really as powerful? Tips and Tricks from the field With the introduction of AlwaysOn, Windows Clustering Services is now more critical than ever.
- What Does it Take to Deliver a Superior Customer Experience? The Two Top-Rated Online Retailers, B&H Photo and Crutchfield Electronics, Share Their Secrets Discuss practical CX tools and service methods such as contact center agents and the use of realtime speech analytics to help contact center... All IT Industry White Papers | Webcasts