Monday, July 8, 2019

Microsoft Top-Tier Executives Average Pay Raise Was a Blistering 32.4% Per Year During the Past Ten Years (2009-2018)

From Company Proxy Statement filings with the SEC, below are Microsoft's Top-Tier Executives Annual Total Compensation for each of two consecutive full years of employment for the most recent ten years.

The very successful, well-run Microsoft subsequent to a CEO change in February 2014 is the 29th Dow Industrial Company I have researched so far on Top-Tier Executives Average Long-term % Pay Raises Per Year.  

Microsoft's Top-Tier Executives Average Annual Pay Raise of a blistering 32.4% per year over the past 10 years is the highest of these 29 Dow Companies, topping second highest McDonalds 30.7%.

Microsoft's 32.4% per year 10 year average annual pay raise is substantially lower than its 65.1% per year 5 year average annual pay raise since Microsoft's key CEO change in February 2014.  So on the downside, Microsoft's contribution to US Annual Pay Raise Income Inequality was especially expanded during the most recent 5 years.   

To fix Income Inequality driven mainly by Company and its Board of Director choices on Percentage Annual Pay Raises, the US Government should step in and pass wisely-designed Fair Pay Raise Income Inequality Narrowing Company tax incentives ..... the carrot ..... and Company wise tax disincentives ..... the stick.  

And the continuing annual net tax revenues raised by the US Government here should be set up in a separate fund to be used only for wise additional income inequality narrowing initiatives.  This fund should be run by an outside group made up entirely of minorities harmed the most by Income Inequality Expansion of the past decades  .....all women, all blacks, all Latinos, all other non-white people, all past and present union members, all LGBTQ, all non-employee contract workers and all middle and lower income people of all ages.

Also, the US Government should require all US Corporate Boards to include at least one worker representative and to exclude any Company Executive. 

I will continue this same research for the one remaining Dow Company Apple, then I will combine all 30 Dow Industrial Companies together after converting them all to consistent ten-year periods.  Thus I will then have a large enough group of Top-Tier Executives which will  result in sufficiently-valid overall results and then I will turn my attention to many other large US Companies to get a better handle on just why the US has such massive continuing Income Inequality Expansion ..... it appears to be predominantly about the relative long-term  annual pay raise percentages.


FYE FYE FYE FYE FYE FYE FYE FYE FYE FYE
June June June June June June June June June June
Microsoft 2018 2017 2017 2016 2016 2015 2015 2014 2014 2013
Top-Tier Total Total Total Total Total Total Total Total Total Total
Executive Comp Comp Comp Comp Comp Comp Comp Comp Comp Comp
$ 000s $ 000s $ 000s $ 000s $ 000s $ 000s $ 000s $ 000s $ 000s $ 000s
Satya Nadella CEO and Director     25,843     20,014     20,014     17,692     17,692     18,294     18,294     84,309     84,309       7,669
Amy Hood EVP CFO     14,924     11,582     11,582     10,375     10,375       8,755       8,755     10,463     10,463       7,461
Jean-Philippe Courtois EVP Pres Global Sales Ops     11,126     18,295  N/A   N/A 
Margaret Johnson EVP Business Development       8,758       6,881       6,881       6,716  N/A   N/A             
Bradford Smith Pres and Chief Legal Officer     13,512     10,320     10,320       8,611       8,611       6,801       6,801     16,965  N/A   N/A 
B. Kevin Turner COO  N/A   N/A      12,957     12,195     12,195     22,719     22,719     10,384
Steve Ballmer Former CEO and Director  N/A   N/A 
Totals     74,163     67,092     48,797     43,394     49,635     46,045     46,045   134,456   117,491     25,514
Annual % Change 10.5% 12.5% 7.8% -65.8% 360.5%
5 Year Average Per Year % Change 65.1%
FYE FYE FYE FYE FYE FYE FYE FYE FYE FYE
June June June June June June June June June June
Microsoft 2013 2012 2012 2011 2011 2010 2010 2009 2009 2008
Top-Tier Total Total Total Total Total Total Total Total Total Total
Executive Comp Comp Comp Comp Comp Comp Comp Comp Comp Comp
$ 000s $ 000s $ 000s $ 000s $ 000s $ 000s $ 000s $ 000s $ 000s $ 000s
Steve Ballmer Former CEO and Director       1,261       1,318       1,318       1,377       1,377       1,351       1,351       1,277       1,277       1,351
Satya Nadella CEO and Director  N/A   N/A 
Amy Hood EVP CFO  N/A   N/A 
Peter Klein Former CFO       4,152       5,109       5,109       3,522       3,522       3,643  N/A   N/A     
Christopher Liddell Former CFO          N/A   N/A        4,433       4,616
Robert Bach Pres Entertainment&DevicesDiv       7,354       7,150  N/A   N/A 
Stephen Elop Pres MSFT Business Division       7,303     14,392  N/A   N/A 
Kurt DelBene President MSFT Office Division       7,592       7,907       7,907       6,219  N/A   N/A     
Steven Sinofsky President Windows       8,584       7,208  N/A   N/A     
B. Kevin Turner COO     10,384     10,684     10,684       9,277       9,277       7,915       7,915       6,983       6,983       7,704
Totals     23,389     25,018     33,602     27,603     14,176     12,909     23,923     29,802     12,693     13,671
Annual % Change -6.5% 21.7% 9.8% -19.7% -7.2%
10 Year Average Per Year % Change 32.4%