Microsoft Shareholders OK New Pay Proposal

Microsoft Corp. said shareholders approved a proposal that would let the company pay workers with stock instead of options, a plan that had been opposed by the California Public Employees’ Retirement System.

CalPERS, the biggest U.S. pension fund, said it voted against the proposal because Microsoft didn’t say what percentage of the stock grants would carry performance criteria and because those criteria aren’t strong enough. CalPERS owns 55.7 million Microsoft shares.

Microsoft in July said that it would stop granting stock options and replace them with stock grants. The Redmond, Wash.-based company needed approval for the proposal, which authorized shares designated for options to be used for grants, in order to move forward with the new compensation plans.

Shares of Microsoft fell 20 cents to $25.80 on Nasdaq.

From Bloomberg News