Microsoft shelling out “awards” to executives during hunt for new CEO

Sep 23, 2013
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Microsoft shelling out “awards” to executives during hunt for new CEO

Following Microsoft's surprising announcement that current CEO Steve Ballmer will be stepping down in the near future, the company began hunting for a replacement, considering options both internal and external. During this process, the company has begun offering "awards" to some of its executives, giving them incentive to stick around during the process.

On August 23, it was revealed that CEO Steve Ballmer would be leaving the company within 12 months from the announcement, something that takes place during an important time for the company as it shifts it focus to keep pace with a changing industry. It was such an announcement that has spurred the new award incentives the company will be giving out.

Such information comes from a filing the company submitted to the U.S Securities and Exchange Commission (SEC), in which it states that Microsoft "may from time to time make awards to executive officers," the reason being -- in certain ways, at least -- to facilitate "continuity of key leaders during the transition to a new chief executive officer."

The awards come in the form of special stocks, of which they're going to the top of the executive pool, though no specific executives were mentioned. The stocks themselves, however, were detailed, with each being worth between 25-percent and 150-percent of the recipient's yearly salary. This is on top of the stocks and cash bonuses the executives receive every year, though none of these extra awards have been offered yet.

SOURCE: Reuters


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