April 19, 2013, 4:19 PM — Microsoft's chief financial officer, Peter Klein, will receive $2 million in the year after he retires from the company, according to documents filed Thursday with the U.S. Securities and Exchange Commission (SEC).
Klein and Microsoft announced Thursday that he will leave the company after an 11-year stint. He will work through the end of the fiscal year, which for Microsoft wraps up June 30.
As part of his separation package, Klein will receive a $1 million payment on Jan. 15, 2014, and a second $1 million check on June 30, 2014, a Form 8-K filed by Microsoft said.
The payments are "compensation for his services during fiscal year 2013 and performance of his obligations under the Agreement," the 8-K stated.
That agreement, also posted on the SEC website, bars Klein from working for any firm that competes with Microsoft for a period of one year and mandates that he keep confidential all information about Microsoft.
The latter clause bars Klein from talking to the press without prior approval from Microsoft, and forbids him from blogging or otherwise writing about Microsoft.
"I also agree not to disparage or to induce or encourage others to disparage Microsoft or its officers or directors," the agreement read.
The $2 million Klein is to receive was also in lieu of any bonus or stock grants he may have had coming later this year.
"I acknowledge and agree that I will not be eligible for any additional compensation after the Termination Date, including but not limited to my fiscal year 2013 compensation under the Company's Executive Officer Incentive Plan," the agreement noted.
For fiscal year 2012, which ended June 30, 2012, Klein received a bonus of $4.75 million in the form of stock grants. The stock was awarded in September 2012.
Klein can certainly afford to, as he put it during an earnings call yesterday, "spend time with family in a way I haven't previously had the chance." According to SEC filings, Klein controlled 471,016 shares of Microsoft stock as of Sept. 10, 2012, the last time he recorded a transaction with regulators.
At Friday's price of $29.80 (as of 4:00 p.m. ET), those shares were worth $14 million.
Klein was paid less than his counterpart at Apple, Peter Oppenheimer, who last year received a bonus stock grant of 150,000 shares -- worth $58.8 million at today's price -- and whose salary was $800,000, or 36% more than Klein's $590,000.