Ballmer Loses Bonus Money Thanks To Poor Windows Sales And Browser Problems

Steve Ballmer

Photo: AP

SEATTLE, Oct 9 (Reuters) – Microsoft Corp Chief Executive Steve Ballmer got a lower bonus than last year’s, partly for flat sales of Windows and his failure to ensure that the company provided a choice of browser to some European customers.Ballmer, who took over as CEO from co-founder Bill Gates in 2000, earned a bonus of $620,000 for Microsoft’s 2012 fiscal year, which ended in June, down 9 per cent from the year before, according to documents filed Tuesday with the U.S. Securities and Exchange Commission.

His salary — low by U.S. corporate standards — remained essentially flat at $685,000.

It is the third year in a row that Ballmer has not earned his maximum bonus, set at twice his salary.

Microsoft’s recent financial year was scarred by a massive $6.2 billion write-down for a failed acquisition and lower profit from its flagship Windows system as computer sales stood still.

In the company’s filing, Microsoft’s compensation committee said it took into account a 3 per cent decline in Windows sales over the year, as well as “the Windows division failure to provide a browser choice screen on certain Windows PCs in Europe as required by its 2009 commitment with the European Commission.”

The company’s failure to provide a browser choice in Europe was an embarrassing setback for the software maker, which has been embroiled in disputes with European regulators for more than a decade and paid more than $1 billion in fines for including its own Internet Explorer browser on Windows. It now faces further fines from a new investigation.

Copyright (2012) Thomson Reuters. Click for restrictions

NOW WATCH: Tech Insider videos

Want to read a more in-depth view on the trends influencing Australian business and the global economy? BI / Research is designed to help executives and industry leaders understand the major challenges and opportunities for industry, technology, strategy and the economy in the future. Sign up for free at research.businessinsider.com.au.