MSFT » Topics » Compensation Philosophy

This excerpt taken from the MSFT DEF 14A filed Sep 29, 2009.

Section 1. Compensation Philosophy

We design the compensation program for our executive officers to attract, motivate, and retain the key executives who drive our success and industry leadership. We achieve these objectives through a compensation package that:

 

   

provides competitive total compensation consisting primarily of stock-based compensation, encouraging our executive officers to act as owners with an equity stake in our company,

   

provides a significant portion of total compensation linked to performance that we believe will create long-term shareholder value,

   

differentiates rewards based on the contributions of the executive officer to our performance,

   

enhances retention by having a large percentage of total compensation subject to multi-year vesting, and

   

does not encourage unnecessary and excessive risk taking.

This excerpt taken from the MSFT DEF 14A filed Sep 29, 2008.

Compensation Philosophy

We designed the compensation program for our named executive officers to attract, motivate, and retain the key executives who drive Microsoft’s success and industry leadership. We achieve these objectives through a compensation package that:

 

   

provides competitive total compensation consisting primarily of cash and stock,

   

provides a significant portion of total compensation linked to performance that we believe will create shareholder value in the near and long term,

   

differentiates rewards based on the contributions of the named executive officer’s division or group to Microsoft’s performance, and

   

encourages our named executive officers to act as owners with an equity stake in Microsoft.

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