If you think it’s going to cost you a lot to retire, consider what it cost Robbie Bach, the outgoing president of Microsoft’s entertainment and devices business and head of its Xbox business.
Bach announced in May that he was retiring this fall, but his retirement date is technically Dec. 31, according to Microsoft’s new proxy statement.
In his last fiscal year at Microsoft, Bach set records for the business – $8.1 billion in revenue and $679 million in operating income – and was awarded 100 percent of his performance bonus. That’s despite struggles of Microsoft’s phone business, which was also under his watch.
(Steve Ballmer also received 100 percent of his incentive award)
Bach’s bonus was $1.4 million, plus stock awards worth $5.6 million. That’s on top of a $645,000 base salary.
But because he’s retiring, Microsoft’s only giving him 25 percent of his stock award this year – $1.4 million.
In other words, Bach had to give up stock worth $4.2 million to retire.
Still, it doesn’t sound like he’ll have to become a greeter at Wal-Mart or sling burgers at McDonald’s in his golden years.
Stephen Elop, who left the top spot in Microsoft’s business software group on Sept. 10 to lead Nokia, is also giving up a few bucks for his move to Finland.
Elop was awarded a performance bonus of $6.72 million – 96 percent of his target – but most of it’s staying in Redmond.
He’s giving up $5.38 million of it – the portion given in stock. He’s also giving up about half of the $1.34 million cash portion “due to the repayment of a portion of his July 2008 signing bonus,” Microsoft’s proxy said.
Presumably Nokia’s going to help him out.
Here are all of the salaries and bonuses for Microsoft’s top execs, as listed in the proxy (click for a bigger image):