* CEO Ballmer gets 50 pct of full bonus payout
* Faulted for Kin flop, loss of phone share
* Need for new "form factors" to counter iPad
By Bill Rigby
SEATTLE, Sept 30 Microsoft Corp (MSFT.O) Chief
Executive Steve Ballmer didn't get his maximum bonus for the
last fiscal year, despite notching the company's highest ever
sales, as he took a hit for missteps on phones and not moving
fast enough to counter Apple Inc's (AAPL.O) iPad.
Ballmer, 54, got a cash bonus of $670,000 for the fiscal
year ended June 30, equal to his salary, but only half of the
maximum bonus payout, according to a filing with securities
regulators on Thursday.
The world's largest software company commended Ballmer for
increasing sales 7 percent to a record $62.5 billion, cutting
costs, launching the latest versions of Windows and Office, and
pushing along cloud computing and gaming efforts.
But a discussion of Ballmer's pay in the company's annual
proxy filing also referenced the "unsuccessful launch of the
Kin phone, loss of market share in the company's mobile phone
business, and the need for the company to pursue innovations to
take advantage of new form factors."
Microsoft's Kin -- a feature phone aimed at teenagers --
flopped this year and was dropped less than three months after
launch with poor sales.
Its Windows mobile phone software has been losing share
sharply over the last few years to Apple's iPhone, Google Inc's
(GOOG.O) Android and Research in Motion Ltd's RIM.TORIMM.O
BlackBerry. It is now fourth in the U.S. market for smartphone
operating systems with less than 12 percent, according to
research firm comScore.
The company has also been in the spotlight for the lack of
any quick response to Apple's iPad -- a revolution in what the
industry calls "form factor" -- which has sold more than 3
million since launching earlier this year. Ballmer said in July
that slates and tablets running Windows would appear as soon as
they are ready.
With his bonus, Ballmer got a total direct pay package of
$1.34 million for fiscal 2010, only about 6 percent higher than
$1.26 million the year before. Microsoft froze base salaries
for its top executives in the last fiscal year due to the
Microsoft no longer issues stock options for employees, and
at his own request, Ballmer gets no stock awards. He already
owns 408 million shares, or 4.75 percent of the company, worth
about $10 billion. He is the 16th richest American, according
to Forbes magazine.
(Reporting by Bill Rigby; Editing by Richard Chang)