Microsoft Rewards Executives with $951 Million in Stock Grants

Published: September 6, 2006

by Alex Woodie

Microsoft rewarded more than 900 of its top executives and mangers with close to $1 billion in stock grants last week as part of a compensation program Microsoft implemented several years ago.

In 2003, as Microsoft's share price was starting to stagnate, the company stopped giving less-attractive stock options and started giving stock grants to employees as part of its compensation program. The first of three blocks of stock grants matured last week, bringing some executives several million dollars in bonuses.

Jeff Raikes, president of the Microsoft business division, received the most: 875,334 shares of stock, worth about $7.5 million at current prices. Kevin Johnson, co-president of the platforms and services division, received stock worth $6 million. Robert Back, president of the entertainment and devices division, received stock worth $2.8 million, while Microsoft chief counsel, Brad Smith, received stock worth $2.3 million. Microsoft CFO Chris Liddell's bonus was $1.2 million in stock, while Lisa Brummel, head of human resources, got $1.5 million.

All in all, more than 900 Microsoft employees received $951 million in stock, according to forms filed with the Securities and Exchange Commission. The same employees will be eligible for two more batches of stock that will mature in 2007 and 2008.

Neither Bill Gates, Microsoft's founder and chief software architect, nor its CEO, Steve Ballmer, were included in the stock grant program.