Steve Ballmer

The truth is we dramatically increased profit more than a triple. Because people forget there was a major change that came along early in my tenure. And that's the move to have to expense stock options. So if you had restated our books to the time I actually took over, stock option expense would have reduced profits notably. stock options were unaccounted for.

The truth is we dramatically increased profit more than a triple. Because people forget there was a major change that came along early in my tenure. And that's the move to have to expense stock options. So if you had restated our books to the time I actually took over, stock option expense would have reduced profits notably. stock options were unaccounted for.

So if you look at what starting profitability would have looked like if stock options had, it would have been lower. And the multiple over my tenure would have been much more than three. Okay.

So if you look at what starting profitability would have looked like if stock options had, it would have been lower. And the multiple over my tenure would have been much more than three. Okay.

I think you might say three in revenue and probably closer to four plus five, maybe even on profit. About the same time, the dot-com bubble busts. So you have two problems. Number one, now we're showing our books all this expense for stock options. Okay. But people don't value those things, what we have to expense. And the stock is flat, so they value them even less.

I think you might say three in revenue and probably closer to four plus five, maybe even on profit. About the same time, the dot-com bubble busts. So you have two problems. Number one, now we're showing our books all this expense for stock options. Okay. But people don't value those things, what we have to expense. And the stock is flat, so they value them even less.

This is a really insidious problem. You got to get rid of stock options. And we transition then from stock options to stock awards. Which, if you notice, I think we were the first to make that as a major transition, but everybody's made the same transition. With the exception of a few senior executives, options are not the primary form of compensation.

This is a really insidious problem. You got to get rid of stock options. And we transition then from stock options to stock awards. Which, if you notice, I think we were the first to make that as a major transition, but everybody's made the same transition. With the exception of a few senior executives, options are not the primary form of compensation.

Little different in startups, but when you look at larger companies, everybody's- Even startups are now doing RSUs. RSUs. And we had to start that. I didn't realize that Microsoft started that. You can check, but-

Little different in startups, but when you look at larger companies, everybody's- Even startups are now doing RSUs. RSUs. And we had to start that. I didn't realize that Microsoft started that. You can check, but-

The dot-com bubble bursting meant our stock price bursted too.

The dot-com bubble bursting meant our stock price bursted too.

No, we had two problems. Before the dot-com bubble bursted, You have everybody saying, oh, maybe we should go to a dot-com company because we're going to make a lot more money. Then the bubble bursts, and everybody says, you know, I'm underwater on my options. We haven't seen the movie Oklahoma, but there's a song. Poor Judd is dead. Poor Judd is dead. Absolutely.

No, we had two problems. Before the dot-com bubble bursted, You have everybody saying, oh, maybe we should go to a dot-com company because we're going to make a lot more money. Then the bubble bursts, and everybody says, you know, I'm underwater on my options. We haven't seen the movie Oklahoma, but there's a song. Poor Judd is dead. Poor Judd is dead. Absolutely.

And that was kind of the way people felt about sort of stock compensation. And not just in our place. People were down because, you know, everybody thought they had a ton, and then they thought they had less. So yeah, it was a real employee morale issue in the early 2000s. We had to really sell this stuff in. That's a big thing I had to work on. Obviously, the antitrust issues.

And that was kind of the way people felt about sort of stock compensation. And not just in our place. People were down because, you know, everybody thought they had a ton, and then they thought they had less. So yeah, it was a real employee morale issue in the early 2000s. We had to really sell this stuff in. That's a big thing I had to work on. Obviously, the antitrust issues.

It was right up there. Yeah. I mean, it was up there. I mean, it- I think when I took over, I'm not even sure we saw a path to resolution. But having an overhang, I'll give you a story because it was after I took over as CEO. We had an executive retreat. We did it down in Bend, Oregon. I can't remember the name of the lodge. Sun River, I think. And we all fly down there.

It was right up there. Yeah. I mean, it was up there. I mean, it- I think when I took over, I'm not even sure we saw a path to resolution. But having an overhang, I'll give you a story because it was after I took over as CEO. We had an executive retreat. We did it down in Bend, Oregon. I can't remember the name of the lodge. Sun River, I think. And we all fly down there.

We rented a plane to fly everybody down there. I don't know how many people. By then, it was probably 80, 90, something like that. And the first session was supposed to be a report. We did this, a report from the field. What are people seeing out there? What's the environment? And this guy, Orlando Ayala, was running sales at the time. And he gets up and, you know, this is probably 02-ish, 01, 02.

We rented a plane to fly everybody down there. I don't know how many people. By then, it was probably 80, 90, something like that. And the first session was supposed to be a report. We did this, a report from the field. What are people seeing out there? What's the environment? And this guy, Orlando Ayala, was running sales at the time. And he gets up and, you know, this is probably 02-ish, 01, 02.