Hardly hurting, but Ballmer sees bonus cut 50 percent

If you are among those who feel that CEOs receive their compensation (including exit packages) regardless of good or bad results, here's some information that may bring a smile to your face. Microsoft CEO Steve Ballmer, 54, is only getting half of the bonus for which he's eligible this year, due to the struggles that Microsoft has in the mobile market.

This information comes via a Definitive Proxy Statement that Microsoft filed with the SEC on Thursday. It's not as though Ballmer will receive a $670,000 bonus in addition to his $670,000 salary.

However, while that figure, which was approved by Microsoft's board of directors, is 100 percent of his 2010 base salary, and a total of $1.34 million is nothing to sneeze at, Ballmer was eligible for 200 percent of his salary as a bonus. A 50 percent cut in bonus compensation does sting. It should be noted that the 2010 bonus exceeds his 2010 bonus by $70,000.

However, contrast Ballmer's income with that of Robbie Bach, President of the Entertainment and Devices Division. He received $645,000 as his base salary, and $1.4 million as a bonus, despite departing.

The company's fiscal year runs from July to June, which explains the timing. On the positive side, the board of directors cited the company's $24.1 billion operating income, Ballmer's ability to manage expenses, and the successful launch of several products, including Office 2010, Bing, and Windows 7, as reasons for the bonus Ballmer is receiving.

The negatives, however, focus on some notable failure, such as the Kin phone, loss of market share for Windows Mobile, and "the need for the Company to pursue innovations to take advantage of new form factors." It is unclear what that final statement means, but both Reuters and C|Net believe that the "new form factors" term refers to tablets like the iPad and the upcoming Galaxy Tab.

Some of these issues are targeting for fixing by initiatives like Windows Phone 7, and Windows tablets, as well. However, Microsoft is far behind other platforms in these arenas, and whether or not the company can catch up is an open question.