Microsoft Guide
The review of changes in Microsoft's leadership is a separate part of the main article, Microsoft History.
Company CEOs:
- 1975-2000 - Bill Gates
- 2000-2013 - Steve Ballmer
- February 2014 - to the present - Satya Nadella
2020: Bill Gates resigns from Microsoft board
In mid-March 2020, Bill Gates announced his resignation from Microsoft's board of directors. The businessman made this decision to focus on charity. Read more here.
2018: Top executive arrested for trying to appropriate $1.5 million through NFL contract
On October 18, 2018, the US Department of Justice announced that Jeff Tran was charged with trying to seize about $1.5 million by issuing fake bills. While serving as director of sports marketing and alliances at Microsoft, he cashed in on tickets that the National Football League (NFL) provided to the company as part of advertising contracts. Read more here.
2016
Tie top management awards to minority representation
On November 17, 2016, Microsoft reported tying executive bonuses to minority representation in the state. The more women and African Americans who work for the company, the more top executives are awarded.
Microsoft decided to pay more to directors based on the number of minorities among employees after it became known that the share of women in the company has been declining for two years. By September 30, 2016, it had dropped to 25.8% from 26.8% a year earlier, largely due to the closure of mobile phone factories that employed many of the weaker sex, explained Microsoft spokeswoman Gwen Houston, who is responsible for staff diversity and equal opportunities.
The share of Afro and Latinos in the Microsoft state for the year increased from 3.5% to 3.7% and from 5.4% to 5.5%. Houston considers this rise "very modest."
 | The increase in the number of people of a different skin color is very small, so I would very much like to improve these indicators. That's the area I'm really focused on, "she said. |  |
Microsoft is increasingly hiring women and people who represent racial minorities. Thus, 27.7% of new employees who joined the company in 2016 were female. Their share among technical specialists amounted to 21.7%.
In September 2015, a former Microsoft employee, Catherine Moussouris, sued the company, accusing it of discriminating against women, manifested in estimates of work merit, pay and chances of promotion.
According to Mussouri, the corporation, underestimates female technical workers in comparison with men working in similar positions. As a result, women in Microsoft receive lower salaries and are less likely to be promoted.[1]
Microsoft Top Executives Earnings
In early October 2016, Microsoft revealed the income of the highest paid top managers of the company. Head Satya Nadella earns the most in the software giant's camp, his compensation package fell by 3% in fiscal 2016. This is reported in documents sent by the corporation to the US Securities and Exchange Commission.
According to the results of the 12-month reporting period, which ended on June 30, 2016, Microsoft paid Satya Nadella a total of $17.7 million against $18.3 million a year earlier. The salary of the head remained the same - $1.2 million. Bonuses increased by 3.3% to $4.5 million, and remuneration in the form of shares, on the contrary, decreased - from $12.8 to $12 million, which led to a reduction in the entire compensation stake of the CEO.
The second place among the highest paid Microsoft executives at the end of 2016 was taken by former Chief Operating Officer Kevin Turner, who left the corporation in July 2016. His last annual earnings before leaving Microsoft amounted to $12.9 million, an increase of 6% compared to the previous year.
CFO Amy Hood received $10.3 million from Microsoft, which is 19% more than a year ago. Company President Brad Smith was given $8.6 million - 27% more than in fiscal 2015. Microsoft Business Development Manager Peggy Johnson earned $6.4 million for the year, down 54% from a year earlier.
As noted by The Seattle Times, Microsoft has tied compensation packages of top managers to financial and other indicators of the entire company's activities in response to investor concerns about the subjectivity of standards that, in their opinion, lead to inflated payments.[2]
Kevin Turner's departure and sales reorganization
In July 2016, Microsoft announced the departure of Kevin Turner from the company. At the same time, the corporation announced the reorganization of the division responsible for sales. For example, Judson Altoff, president of the North American office of the company, has been appointed executive vice president for global commercial sales.
Microsoft International President Jean-Philippe Courtois received the post of Executive Vice President and Director of Global Sales, Marketing and Operations. The separate role of chief operating officer will no longer be at Microsoft.
In addition, Executive Vice President and Chief Marketing Officer Chris Capossela led Microsoft's consumer business in charge of corporate strategy, Kurt DelBene, will also lead IT operations at Microsoft, and company CFO Amy Hood will oversee the sales finance team and be responsible for licensing and pricing issues around the world. Read more here.
Top manager Microsoft left the company after a bicycle accident
At the end of September 2016, it became known about the departure of Ki Lu from Microsoft for health reasons. He worked for an American company for about eight years - since 2008. Read more here.
2015: How much top Microsoft executives earn
On October 19, 2015, it became known about a 78 percent reduction in payments to Microsoft CEO Satya Nadella. The drop in revenues was expected, given the large number of shares that the top manager received for coming to the management of the company.
According to The Wall Street Journal, citing documents provided by Microsoft to the US Securities and Exchange Commission (SEC), according to the results of the fiscal year closed on June 30, 2015, Satya Nadella's base salary amounted to $1.2 million, an increase of 31% on an annualized basis. Bonuses in the form of cash increased over this period by 20% to $4.3 million.
The total compensation stake of the CEO amounted to $84.3 million, where most of it came from a grant issued to the head to receive shares with restricted circulation totaling $59.2 million. Satya Nadella will be able to receive this money in full in 2019, subject to several conditions. Thanks to these securities, Nadella was recognized as the highest paid leader in the United States, the newspaper notes.
In the fiscal year, which will come to an end in June 2016, Satya Nadella is entitled to a much smaller amount - $18.3 million. That's more than other Microsoft top executives.
Thus, the compensation package of CFO Amy Hood is estimated at $8.8 million, which is 16% less than a year earlier. The remuneration of Microsoft Chief Operating Officer Kevin Turner has been reduced by 46% to $12.2 million. As with Satya Nadella, the decrease in payments is due to a reduction in rewards in the form of shares.
Margaret Johnson, who joined Microsoft in September 2014 as executive vice president of business development, will receive $14.5 million from the employer in the fiscal year ending June 2016. This amount will include a one-time bonus of $2.5 million, issued for the fact that Johnson agreed to work as part of the software giant.[3]
2014
Satya Nadella updates top management team
In March 2014, it became known that the newly appointed head of Microsoft Satya Nadella began a serious personnel reshuffle among the top management of the corporation. According to Bloomberg, two senior managers have been dismissed, and the function of another has been seriously changed.
So, Microsoft left Tony Bates, vice president of business development and chief evangelist of the corporation, who moved to Redmond after buying Skype. Initially, he was even among the contenders for the role of the new head of the company, and was called by industry analysts one of the most promising candidates. He has already received many interesting offers, for example, a high post was offered to him at GoPro, a manufacturer of compact video cameras.
Tami Reller, vice president of marketing, also left the corporation. She has worked for the company for more than a dozen years, leading both marketing and finance in the division responsible for Windows development. Where Reller will work, as well as Bates, is not yet known exactly.
Mark Penn, formerly one of the corporation's vice presidents, received a new appointment: now he is CEO of Strategy. Penn is a veteran of the political arena, having worked for Bill Clinton and Tony Blair.
Instead of Bates, development at Microsoft will now be handled by Eric Rudder, who previously served as vice president of strategy, and Tami Reller will be replaced by Chris Capossela. Officially, Microsoft has not yet commented on this message.
Satya Nadella is the third CEO in Microsoft history
On February 4, 2014, Microsoft officially announced the appointment of Satya Nadella as CEO, who previously served as executive vice president of Microsoft Cloud and Enterprise. Microsoft has dedicated a page to the appointment on its website, where it talks about the relentless spirit of innovation and collaboration that Satya Nadella will bring to the company, becoming its third CEO (after Bill Gates and Steve Ballmer).
2013
Selection of candidates for the post of head of Microsoft
In early November 2013, Reuters, relying on its own sources, published a list of candidates for the post of CEO of Microsoft. In August 2013, the head of the corporation, Steve Ballmer, announced his imminent departure. According to Reuters, there are more outsiders on this list than corporation employees seeking promotions.
Among the atsiders, Ford Motor CEO Alan Mulally and ex-head of Nokia Corporation Stephen Elop, who left the post after Microsoft announced the purchase of the vendor's mobile business for $7.2 billion, were included in the shot list. At the moment, Elop continues to work at Nokia as the head of the mobile device division.
Among at least three insider candidates to lead Microsoft, according to Reuters, are names such as Tony Bates, Microsoft's top evangelist and responsible for developing business solutions, as well as Satya Nadella, head of cloud and enterprise products.
None of the candidates listed are "dark horses." All of them have been in contact with Microsoft's business for a long time and know its features well. So, for example, Mulally was an adviser to Ballmer in the last reorganization of the corporation in July 2013.
In October 2013, Bloomberg reported that Microsoft's board of directors would continue to ponder the best candidate for head of the corporation until the end of 2013. In August 2013, Microsoft promised that Ballmer would remain in office for at least 12 months, but that could be shortened, analysts said.
Announcement of the resignation of the head of the Ballmer company
In August 2013, it was reported that Ballmer would step down within the next 12 months. In the remainder of his term, he will continue to lead the company during the transition period and help find Microsoft a new CEO.
At the end of September 2013, it became known that Ford CEO Alan Mulally may become the main contender to replace the resigned Steve Ballmer as head of Microsoft, AllThingsD reported. Another contender for Ballmer's place, Western media call Stephen Elop, also a native of Microsoft, who has been at the helm of Nokia Corporation for the past three years, the purchase of which the corporation recently announced.
Head of Microsoft Office resigns
In July 2013, it became known that Kurt DelBene, a 53-year-old who previously headed Microsoft Office, would resign because he was not appointed head of any of the four new engineering groups that would be created as a result of the reorganization of Microsoft.
This was stated by the executive director of the corporation Steve Ballmer (Steve Ballmer). "Kurt made a huge contribution to the launch of the Office cloud service, he was one of the key persons of my leadership team," Ballmer said.
Delbene has worked for the company for 21 years, including leading the development of the Office suite, one of the key revenue streams for Microsoft's business solutions division. According to BusinessWeek, Delbene's compensation for 2012 was $7.9 million.
Over the past 9 out of 10 quarters, it was this division that generated more revenue for the corporation than any other. For example, in the first quarter of 2013, the division accounted for 31% of the company's turnover, in second place in terms of revenue, the Windows division - 28%.
As a result of the reorganization announced by Ballmer, the Office direction was included in the Applications and Services block, this block was headed by Qi Lu, and, among other things, it will also include developers Bing, Microsoft Exchange, Lync, Microsoft SharePoint, Skype and Yammer. Until now, Lu has been engaged in the search service Bing and online advertising programs.
2010: 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 for 23 years. In addition, at the end of 2010, the head of Entertainment & Devices' Xbox and Zune division, Robbie Bach, and the head of Microsoft Business Division, Stephen Elop, who joined Nokia Corporation, left Microsoft.
1975: Allen and Gates - founders, Gates' mother - salesman
On April 4, 1975, two companions and friends, Paul Allen and Bill Gates, first created Micro-Soft, later called Microsoft Corporation (Microcomputer Software Corporation).
At that time, Bill Gates' mother was the sales manager, who quite successfully promoted Microsoft products to various computer giants.
See also
Notes
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