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Microsoft thought it had an answer to the iPad with Surface tablets, but that gambit hasn't worked out either. Microsoft last month took a $900 million charge on unsold Surface RT inventory, which combined with the tepid market reception to Windows 8, ended up putting a dent in Ballmer's 2013 bonus.
Ballmer made $1.26 million in Microsoft's fiscal 2013 year, including a salary of $697,500 and a bonus of $550,000, which amounted to 79 percent of his target award, according to the proxy filing.
"While the launch of Windows 8 in October 2012 resulted in over 100 million licenses sold, the challenging PC market coupled with the significant product launch costs for Windows 8 and Surface resulted in an 18% decline in Windows Division operating income," Microsoft said in the proxy filing. "Slower than anticipated sales of Surface RT devices and the decision to reduce prices to accelerate sales resulted in a $900 million inventory charge."
Microsoft CFO Amy Hood and Kurt Delbene, the former president of Microsoft's Office division who left in the June re-organization, both received 100 percent of their bonuses. Satya Nadella, head of Microsoft's $19 billion Server and Tools unit, received a $1.58 million bonus that was 105 percent of his target.
Microsoft COO Kevin Turner was the company's highest paid executive for the fourth consecutive year, with a total compensation package of $10.38 million -- including a $2.1 million bonus that represented 100 percent of his target.