Soaring sales mean Microsoft CEO Balmer won’t starve

Thank goodness, no dog food or early-bird specials for Balmer! Microsoft Corp. raised Chief Executive Steve Ballmer's overall compensation 32 percent in 2006 after sales climbed the most in six years. Ballmer got $1.28 million in salary and bonus for the year ended June 30, the Redmond company said Friday in a regulatory filing. Ballmer, with a fortune of $15.2 billion, ranks 16th on Forbes magazine's wealthiest Americans list.

Unlike some technology companies that spend millions on executive security, travel and other perks, Microsoft gave Ballmer a modest $6,750 in matches to his 401(k) retirement plan and approximately $3,000 worth of life insurance and athletic club memberships.

Microsoft won orders last year by putting out new versions of its Windows operating system and Office programs, leading to sales of $51.1 billion, a 15 percent increase. The company cut Ballmer's pay the year before after profit gains slowed.

Ballmer, whose 4.3 percent stake in Microsoft makes him the third-biggest holder, doesn't get stock grants and has a smaller salary than the rest of Microsoft's senior executives. The company determines the size of grants to other executives based on how well they satisfied customers and won them over to new products, and whether they achieved goals specific to their businesses.

Microsoft shares climbed 23 cents Friday to $28.65 on the Nasdaq stock market. They have declined 4.1 percent this year while the Standard and Poor's 500 Index has risen 7.6 percent.

COO Kevin Turner received $8.45 million, about half of what he got a year ago. The old package included a one-time new hire bonus of $7 million and $8.2 million in stock to replace shares he forfeited upon leaving Wal-Mart Stores Inc. to join Microsoft.

Chairman Bill's compensation wasn't listed for the year because of a change in securities rules. Previously, the executives included in the proxy filing were the CEO and the four highest-paid executives, based on salary and bonus.

http://seattlepi.nwsource.com/business/332735_msftpay22.html