Who is B. Kevin Turner and what is his background?

B. Kevin Turner is the new Chief Operating Officer of Microsoft, joining the company on September 8, 2005. He previously held significant leadership positions at Wal-Mart Stores, Inc., including Executive Vice President and President/CEO of the SAM’S CLUB division, and Executive Vice President/Chief Information Officer for Wal-Mart's Information Systems Division.

What is the significance of this COO appointment for Microsoft?

The appointment of a COO with a strong operational background from a major retailer like Wal-Mart suggests Microsoft is looking to enhance its operational efficiency, execution, and potentially drive further strategic growth. It indicates a focus on strengthening the senior management team's capabilities.

What are the key components of B. Kevin Turner's compensation package?

Mr. Turner's compensation includes a base salary of $570,000 per year, eligibility for an annual performance bonus (0-100% of salary), a target Shared Performance Stock Award (SPSA) of 624,000 shares, and an additional stock award of 320,000 shares with deferred vesting. He also receives a substantial $7,000,000 on-hire payment, subject to clawback provisions based on his tenure with the company.

Are there any conditions attached to the $7,000,000 on-hire payment?

Yes, the $7,000,000 on-hire payment has clawback provisions. If Mr. Turner voluntarily leaves or is terminated for cause within the first 12 months, the full amount must be returned. Partial amounts must be returned if he leaves voluntarily or is terminated for cause between 12-24 months or 24-36 months of employment. However, if Microsoft terminates his employment for reasons other than 'for cause', these payback provisions are voided.

MSFT 8-K: Leadership Changes

Summary

Microsoft Corporation has announced a significant leadership change with the appointment of B. Kevin Turner as its new Chief Operating Officer (COO), effective September 8, 2005. Mr. Turner brings extensive experience from his previous role as Executive Vice President and CEO of Wal-Mart's SAM’S CLUB division, where he demonstrated strong operational and leadership capabilities. This appointment signals Microsoft's focus on strengthening its operational execution and potentially driving further growth in key business areas. Investors should view this as a strategic move aimed at enhancing management depth and driving efficiency within the company. The terms of Mr. Turner's compensation package, including base salary, performance bonuses, and substantial stock awards, reflect the company's commitment to attracting top talent and aligning executive incentives with long-term shareholder value.

Key Highlights

1B. Kevin Turner appointed as Chief Operating Officer (COO), effective September 8, 2005.
2Mr. Turner previously served as Executive Vice President and President/CEO of Wal-Mart's SAM’S CLUB division.
3Turner's compensation includes a $570,000 annual salary, eligibility for performance bonuses (0-100% of salary), and a target stock award of 624,000 shares under the SPSA Program.
4A significant 'on-hire' payment of $7,000,000 is part of Mr. Turner's package, with clawback provisions tied to tenure.
5Additional stock award of 320,000 shares with staggered vesting schedules (2008, 2010, retirement) is granted to compensate for forfeited equity.
6Executive relocation assistance, including potential company purchase of his current residence, is provided.
7The filing includes the offer letter to Mr. Turner and a press release announcing the appointment.

MICROSOFT CORP 8-K Report, Executive Changes (Aug 4, 2005)

Summary

Key Highlights

Frequently Asked Questions