Summary
Microsoft Corporation (MSFT) filed a Form 8-K on February 21, 2012, to announce a change in its Board of Directors. Effective February 17, 2012, the Board appointed John E. Thompson, age 62, as a new director. Mr. Thompson brings significant leadership experience, currently serving as CEO and director of Virtual Instruments Corporation and as a director of United Parcel Service, Inc. This appointment is notable as Mr. Thompson will receive standard compensation for non-employee directors, including an annual retainer of $250,000, with a substantial portion ($150,000) paid in stock awards. This aligns director compensation with shareholder interests. Investors should view this as a move to strengthen the Board's oversight and expertise.
Key Highlights
- 1John E. Thompson appointed to Microsoft's Board of Directors, effective February 17, 2012.
- 2Mr. Thompson is the CEO and a director of Virtual Instruments Corporation.
- 3Mr. Thompson also serves as a director for United Parcel Service, Inc.
- 4Non-employee director compensation includes an annual retainer of $250,000.
- 5Approximately $150,000 of the annual retainer is provided in stock awards.
- 6Compensation is prorated and paid quarterly in arrears.
- 7Mr. Thompson will enter into a standard director indemnification agreement with Microsoft.