Translated by
2016/11/18 10:00:46

Management of Microsoft

The overview of changes in leadership team of Microsoft corporation is a separate part of the main article the History of Microsoft.


CEOs of the company:


Binding of awards of top managers to representation of minorities

On November 17, 2016 Microsoft announced a binding of bonuses of heads to representation of minorities in the state. The more women and the Afro-Americans work in the company, the it is more than award of top managers.

Microsoft decided to pay more directors in dependence of number of minorities among employees after it became known that the share of women in the company is reduced two years. By September 30, 2016 it decreased to 25.8% from 26.8% the previous year in many respects because of closing of the plants on release of mobile phones at which worked hard women, the representative of Microsoft Gwen Houston who is responsible for questions of a variety of personnel and providing equal opportunities explained.

Microsoft: hiring of Blacks and women — more award of top managers is more

The share Afro-and Latin Americans in staff of Microsoft in a year grew from 3.5% to 3.7% and from 5.4% to 5.5%. Huston considers this rise "very modest".

Growth of number of people of other skin color is very small therefore I very much would like to improve these indicators. This that area on which I am really concentrated — she told.

Microsoft even more often employs the women and people representing racial minorities. So, 27.7% of new employees who came to the company in 2016 belonged to a female. Their share among technical specialists made 21.7%.

In September, 2015 the former employee of Microsoft Katherine Moussouris filed a lawsuit against the company, having accused her of the discrimination of women which is shown in estimates of working merits, payment and chances of increase.

According to Mussuri, the corporation, underestimates female technical workers in comparison with the men working at similar positions. As a result of the woman in Microsoft receive smaller salary, and promote them less often.[1]

Income of top managers of Microsoft

At the beginning of October, 2016 Microsoft opened the income of the highest paid top managers of the company. Most of all in a camp of software giant the head Satya Nadella earns, his compensation packet in 2016 financial year was reduced by 3%. It is reported in the documents sent by corporation to the U.S. Securities and Exchange Commission.

According to the results of 12-month reporting period which came to the end on June 30, 2016 Microsoft paid to Satya Nadella in total $17.7 million against $18.3 million the previous year. The salary of the head remained the same — $1.2 million. Bonuses increased by 3.3% to $4.5 million, and remunerations in the form of actions, on the contrary, decreased — from $12.8 to $12 million, as led to reduction of all compensation packet of the CEO.

Payments to the head of Microsoft Satya Nadella made $17.7 million

The second place among the highest paid heads of Microsoft at the end of 2016 fiscal years was taken by the former operating officer Kevin Turner who in July, 2016 left corporation. Its last annual earnings before leaving Microsoft made $12.9 million, having increased by 6% in comparison with previous year.

The chief financial officer Amy Hood received $10.3 million from Microsoft that is 19% more than an indicator of year prescription. Issued to the president of the company Brad Smith $8.6 million — 27% more concerning 2015 financial year. The head of development of business of Microsoft Peggy Johnson earned $6.4 million in a year that is 54% less, than the previous year.

As notes the The Seattle Times edition, Microsoft tied compensation packets of top managers to financial and other performance of activity of all company in response to investor concern about subjectivity of the standards bringing, according to them, to the overestimated payments.[2]

Kevin Turner's leaving and reorganization of sales

In July, 2016 Microsoft announced Kevin Turner's leaving the company. At the same time the corporation announced reorganization of the division which is responsible for sales. So, the president of North American office of the company Judson Althoff is appointed the executive vice president for global commercial sales.

The president of Microsoft International Jean-Philippe Courtois received a post of the executive vice president and director of global sales, marketing and operational work. The separate position of the operating officer will not be in Microsoft any more.

Besides, the executive vice president and the marketing director Chris Capossela headed the consumer business of Microsoft which is responsible for corporate strategy Kurt DelBene also will direct IT transactions in Microsoft, and the chief financial officer of the company Emy Hood will supervise a command on financing of sales and to be responsible for questions of licensing and pricing worldwide. Read more here.

2015: How many top managers of Microsoft earn

On October 19, 2015 it became known of 78 percent reduction of payments to the CEO of Microsoftsatye Nadella. Fall of income was expected, considering a large number of shares which were received by the top manager for arrival to the management of the company.

According to the The Wall Street Journal newspaper with reference to the documents provided to Microsoft U.S. Securities and Exchange Commission (U.S. Securities and Exchange Commission, SEC), according to the results of the financial year closed on June 30, 2015 the basic salary of Satya Nadella made $1.2 million, having increased by 31% year on year. Bonuses in the form of cash increased for this period by 20% to $4.3 million.

The amount of remunerations of the head of Microsoft Satya Nadella decreased by 78%

The total compensation packet of the CEO made $84.3 million where the most part fell on the grant issued to the head on obtaining stocks with restriction of the address for total amount of $59.2 million Satya Nadella will be able to receive this money fully in 2019 at accomplishment of several conditions. Thanks to these securities Nadella was recognized by the highest paid head in the USA, notes the edition.

In financial year which will come to an end in June of the 2016th Satya Nadella needs much less large amount – $18.3 million. It is more in comparison with other top managers of Microsoft.

So, the compensation packet of the chief financial officer Amy Hood is estimated at $8.8 million that is 16% less, than the previous year. The amount of remunerations of the chief operating officer of Microsoft Kevin Turner is reduced by 46% to $12.2 million. As well as in a case with Satya Nadella, decrease in payments is connected with reduction of remunerations in the form of actions.

Margaret Johnson who joined Microsoft in September, 2014, having held a post of the executive vice president for business development, will receive from the employer $14.5 million in the financial year which is coming to the end in June of the 2016th. The single award in $2.5 million issued for the fact that Johnson agreed to work as a part of software giant will enter this amount.[3]


Satya Nadella updates a team of top managers

In March, 2014 it became known that again appointed head of Microsoftsatya Satya Nadella began serious staff movements among top management of corporation. According to Bloomberg, two high-ranking managers are dismissed, and function of one more is seriously changed.

So, Microsoft was left by Tony Bates, the vice president for business development and the chief evangelist of corporation who passed into Redmond after purchase of Skype. Initially it was even among applicants for a role of the new head of the company, and was called industry analysts to one of the most promising candidates. He already received a set of interesting offers, for example, the high post to him was offered in GoPro, the producer of compact video cameras.

Also left corporation the marketing vice president Tami Reller. It worked in the company more than a decade, heading both marketing direction, and finance in the division which is responsible for development of Windows. Where Reller, also will work as well as Bates, so far it is definitely not known.

Mark Penn who was earlier one of vice presidents of corporation was given new assignment: now he is a CEO on strategy. Penn is the veteran of political arena, he worked in Bill Clinton and Tony Blair commands.

Instead of Bates in Microsoft Eric Rudder who was earlier holding a post of the vice president for strategy will be engaged in development now, and Tami Reller will replace Chris Capossela. Officially did not comment on this message of Microsoft yet.

Satya Nadella is the third CEO in the history of Microsoft

On February 4, 2014 Microsoft officially announced Satya Nadella appointment to a position of the CEO who was earlier holding a position of the executive vice president of division of Microsoft Cloud and Enterprise. Microsoft devoted to appointment the page on the website where it tells about continued spirit of innovations and cooperation which Satya Nadella will introduce in the company, having become its third CEO (after Bill Gates and Steve Ballmer).


Candidate screen on a post of the head of Microsoft

At the beginning of November, 2013 Reuters agency, being based on the data of own sources, published the applicants list on a post of the CEO of Microsoft. In August, 2013 the head of corporation,Steve Ballmer, announced the fast leaving. According to Reuters, in this list there are more outsiders, than the staff of corporation applying for increase.

Among atsayder the short-list included the CEO of Ford Motor Alan Mulalli and the former head of Nokia Corporation companyStephen Elop who left a post after Microsoft announced purchase of mobile business of vendor for $7.2 billion. At the moment Elop continues to work in Nokia as the head of division of release of mobile devices.

Among at least three candidate insiders on a post of the head of Microsoft, according to Reuters, such names as Tony Bates, the chief evangelist of Microsoft and responsible for development of solutions for business and also Satya Nadella, the head of division of cloud and corporate products.

Any of the listed candidates is not "dark horse". All of them anyway adjoin long ago to business of Microsoft and well know its features. So, for example, Mulalli was Ballmer's adviser during the last reorganization of corporation in July, 2013.

In October, 2013 the Bloomberg agency reported that the Board of Directors of Microsoft will continue to deliberate over the best candidate for a post of the head of corporation until the end of 2013. In August, 2013 Microsoft promised that Ballmer will remain on the post not less than 12 months, but, according to analysts, this term can be reduced.

Declaration of resignation of the head of the company Ballmer

In August, 2013 it became known that Ballmer will resign within the next 12 months. In remaining period he will continue to direct the company during a transient period and will help to find Microsoft of the new CEO.

At the end of September, 2013 it became known that the CEO of Ford Alan Mulalli (Alan Mulally), perhaps, will become the main contender for releasing the resigned Steve Ballmer from a post of the head of Microsoft, the AllThingsD edition reported about it. One more applicant for Ballmer's place the western media call Stephen Elop, also the native of Microsoft, the last three years of Nokia Corporation which was at a wheel which purchase was announced by corporation recently.

The head of the Microsoft Office direction resigns

In July, 2013 it became known that Kurt DelBene, 53-year-old, earlier heading the Microsoft Office direction, will resign as he was not appointed by the head of any of four new engineering groups which will be created as a result of reorganization of Microsoft.

It was declared by the chief executive of corporation Steve Ballmer. "Curt made a huge contribution to start of a cloud service of Office, he was one of key persons of my team of leaders", - Ballmer said.

Delbene worked in the company 21 years, including heading development of a packet of Office, one of key sources of profit for a division of business solutions of Microsoft. According to BusinessWeek, Delbene's compensation for 2012 made $7.9 million.

For the last 9 of 10 quarters this division generated corporations more revenues, than any another. For example, in the first quarter 2013 31% of turnover of the company, on the second place on revenue division of Windows – 28% were the share of a division.

As a result of the reorganization announced by Ballmer, the Office direction was introduced into the block of applications and services (Applications and Services), this block headed Qi Lu (Qi Lu), and in addition it will include also developers Bing Microsoft Exchange Lync Microsoft SharePoint, Skype and Yammer. Until now Lu was engaged in the Bing search service and programs advertizing online.

2010: The Maglia, Bech and Elop leave the company

At the initiative of Steve Ballmer the company was left by the president of the Server and Tools group Bob Muglia who worked in it 23 years. Besides, at the end of 2010 Microsoft was left by the head of division of Entertainment & Devices of release of Xbox and Zune Robbie Bach and the head of Microsoft Business Division Stephen Elop who passed into Nokia Corporation.

1975: Allen and Gates - founders, Gates's mother - the seller

On April 4, 1975 two partner and the friend, Paul Allen and Bill Gates, at first created Microsoft company, Microsoft Corporation (Microcomputer Software Corporation) later called.

At that time Bill Gates's mother who quite successfully promoted products of Microsoft to different computer giants acted as the sales manager.

See Also