Summary
This Microsoft Corporation 8-K filing from June 29, 2005, reports a material change in the compensation package for Kevin R. Johnson, Group Vice President of World Wide Sales, Marketing and Services. The primary focus for investors is the significant increase in his annual salary and bonus potential, as well as his participation in the Shared Performance Stock Award (SPSA) Program. These changes reflect the company's strategy to incentivize and retain key executive talent in critical revenue-generating divisions. While this filing is primarily administrative, it signals an investment in senior leadership to drive future sales and service performance. Investors should note the specifics of the compensation, including the target stock award, as it may provide insight into the company's performance expectations and management's alignment with shareholder value. The at-will employment status is standard and does not represent a change in risk for the company.
Key Highlights
- 1Microsoft announced an increase in the compensation for Kevin R. Johnson, Group Vice President, World Wide Sales, Marketing and Services.
- 2Mr. Johnson's new annual salary is $570,000.
- 3He is eligible for an annual bonus ranging from 0% to 100% of his eligible salary.
- 4Mr. Johnson participates in Microsoft's Shared Performance Stock Award (SPSA) Program.
- 5His target SPSA award is 696,296 shares of Microsoft common stock.
- 6The employment agreement is at-will, which is standard for executive positions.