EditorsAbout the SiteComes vs. MicrosoftUsing This Web SiteSite ArchivesCredibility IndexOOXMLOpenDocumentPatentsNovellNews DigestSite NewsRSS

01.12.11

Microsoft is Collapsing Based on Staff Exodus

Posted in Finance, Microsoft at 2:16 pm by Dr. Roy Schestowitz

“One strategy that Microsoft has employed in the past is paying for the silence of people and companies. Charles Pancerzewski, formerly Microsoft’s chief auditor, became aware of Microsoft’s practice of carrying earnings from one accounting period into another, known as “managing earnings”. This practice smoothes reported revenue streams, increases share value, and misleads employees and shareholders. In addition to being unethical, it’s also illegal under U.S. Securities Law and violates Generally Accepted Accounting Practices (Fink).

2002 story about Charles Pancerzewski, Microsoft

Summary: The pace of high-level departures at Microsoft speaks volumes and helps confirm that something is very rotten inside

THE SYMPTOMS are sometimes more indicative of a disease than an optimist’s diagnosis/prognosis can ever be. Bias is simply built into the system and nobody dares to deviate towards the controversial. Microsoft is close to many financial firms, so the continued illusion of Microsoft as an unprecedented cash generator falls under too little outside scrutiny. For example, we are asked to accept that Microsoft is rich while its numbers turn out to be fake and it actually has some debt to repay. People in the news pessimistically wondered what’s next for Microsoft around the time it was downgraded by FBR and another analysts firm [1, 2, 3]. It was also around the same time that BlackRock cut its stakes in Microsoft, as we noted at the time.

Earlier this months we ran through some Microsoft news to see if there is something that we missed. Well, while there is a degree of overlap (wrt older posts), there is a lot that needs to be added in order for our record to be complete.

Let us start with the claim that “Microsoft’s Ballmer falls far down list of CEO ‘wealth creators’”. He sank from eighth to almost 100th in just one year! To quote a Microsoft booster:

Microsoft CEO Steve Ballmer fell 65 spots down a list of the top 338 chief-executive wealth creators and destroyers, ranking 73rd in 2010 after boasting the No. 8 spot in 2009.

Another Microsoft booster says:

But the big drop came at Microsoft. Steve Ballmer’s ranking plummeted a whopping 65 spots as the CEO of the software giant finished in 73rd place. That was enough for the company and Ballmer to earn an “F” in terms of economic margin change. [Update: As a reader pointed out, Microsoft did receive an "A" rating in three of the categories, including management quality score]. Only Campbell Soup, and its CEO Douglas Conant, saw a bigger drop among the top 100 companies.

These reports are as Microsoft-sympathetic as they can get because the writers are both serving Microsoft’s agenda in unofficial-yet-dedicated Microsoft blogs. Here is a corporate ‘news’ article whose headline says that “Ballmer’s CEO ranking plummets, Steve Jobs’ climbs” (storyline added there for increase in page hits).

More importantly, however, there were heaps of articles that month about Ballmer dropping billions in Microsoft shares. There were also embellishments from this or this blog (again Microsoft boosters from Seattle), which don’t put it as bluntly as the report titled “Microsoft CEO Dumps More Shares” put it:

We know that Microsoft is struggling in the consumer and Smartphone markets and that their share of the browser market is on the skids, but does CEO Steve Ballmer know something that we don’t know?

Exactly.

The behaviour among Microsoft presidents has been rather consistent because many of them left and as we’ve shown over the past year or so, many of them also sold their Microsoft shares. Only 2 months ago it was the company’s COO, Kevin Turner (GNU/Linux-hostile guy [1, 2, 3]), who dumped Microsoft shares:

COO of Microsoft Corp. (MSFT) Brian Kevin Turner sells 48,956 shares of MSFT on 11/01/2010 at an average price of $27 a share.

It is worth mentioning that this same GNU/Linux-hostile chum was travelling to Nigeria to ensure its continued dependence on Microsoft back in November (see background in [1, 2, 3]). He was also diversifying by joining the board of Nordstrom at the end of last year, so watch out for what Nordstrom does next. The appointment was additionally covered in [1, 2, 3] just months after Nordstrom had collaborated with Microsoft, or vice versa. Here is the press release about this appointment. Might Turner be the next bigwig to leave Microsoft and pursue other opportunities? These ex-Softies often help Microsoft more from the outside than from the inside. Entryism is becoming a real problem and to quote a Red Hat employee from yesterday, “Will Muglia join/create another patent troll? Maybe Nokia needs more ex-softies? We will see …”

This reference was made in relation to Muglia’s exit [1, 2] and in his departure note (published by Mary Jo Foley) Muglia named his competitive threats and “Linux” was the first. “Microsoft Exec Exodus Continues” is a noteworthy report about it. It’s looking pretty grim.

Microsoft Corp. announced on Monday that Bob Muglia, who led the company’s server and tools division, will leave the company this summer at the behest of Chief Executive Officer Steve Ballmer.

Muglia, who has worked for the Redmond, Washington-based company for 23 years, will continue to actively run the $15 billion Server and Tools business (STB) while Microsoft searches for his replacement, said Ballmer in an e-mail sent to employees on Monday.

My co-host Tim opines that Ballmer will have been fired (or left) by July this year. Microsoft is spiraling down the tube at this stage. As more products get axed, in more areas will Microsoft technically qualify as a patent troll.

“I’d be glad to help tilt lotus into into the death spiral. I could do it Friday afternoon but not Saturday. I could do it pretty much any time the following week.”

Brad Silverberg, Microsoft

Share this post: These icons link to social bookmarking sites where readers can share and discover new web pages.
  • Digg
  • del.icio.us
  • Reddit
  • co.mments
  • DZone
  • email
  • Google Bookmarks
  • LinkedIn
  • NewsVine
  • Print
  • Technorati
  • TwitThis
  • Facebook

If you liked this post, consider subscribing to the RSS feed or join us now at the IRC channels.

Pages that cross-reference this one

What Else is New


  1. The Linux Foundation Needs to Change Course Before GNU/Linux (as a Free Operating System) is Dead

    The issues associated with the Linux Foundation are not entirely new; but Linux now incorporates so many restrictions and contains so many binary blobs that one begins to wonder what "Linux" even means



  2. Largest Patent Offices Try to Leave Courts in a State of Disarray to Enable the Granting of Fake Patents in the US and Europe

    Like a monarchy that effectively runs all branches of government the management of the EPO is trying to work around the judiciary; the same is increasingly happening (or at least attempted) in the United States



  3. Links 19/4/2019: PyPy 7.1.1, LabPlot 2.6, Kipi Plugins 5.9.1 Released

    Links for the day



  4. Links 18/4/2019: Ubuntu and Derivatives Have Releases, digiKam 6.1.0, OpenSSH 8.0 and LibreOffice 6.2.3

    Links for the day



  5. Freedom is Not a Business and Those Who Make 'Business' by Giving it Away Deserve Naming

    Free software is being parceled and sold to private monopolisers; those who facilitate the process enrich themselves and pose a growing threat to freedom in general — a subject we intend to tackle in the near future



  6. Concluding the Linux Foundation (LF) “Putting the CON in Conference!” (Part 3)

    Conferences constructed or put together based on payments rather than merit pose a risk to the freedom of free software; we conclude our series about events set up by the largest of culprits, which profits from this erosion of freedom



  7. “Mention the War” (of Microsoft Against GNU/Linux)

    The GNU/Linux desktop (or laptops) seems to be languishing or deteriorating, making way for proprietary takeover in the form of Vista 10 and Chrome OS and “web apps” (surveillance); nobody seems too bothered — certainly not the Linux Foundation — by the fact that GNU/Linux itself is being relegated or demoted to a mere “app” on these surveillance platforms (WSL, Croûton and so on)



  8. The European Patent Office Does Not Care About the Law, Today's Management Constantly Attempts to Bypass the Law

    Many EPs (European Patents) are actually "IPs" (invalid patents); the EPO doesn't seem to care and it is again paying for corrupt scholars to toe the party line



  9. The US Supreme Court (SCOTUS) Once Again Pours Cold Water on Patent Maximalists

    Any hopes of a rebound or turnaround have just been shattered because a bizarre attack on the appeal process (misusing tribal immunity) fell on deaf ears and software patents definitely don't interest the highest court, which already deemed them invalid half a decade ago



  10. Links 17/4/2019: Qt 5.12.3 Released, Ola Bini Arrested (Political Stunts)

    Links for the day



  11. Links 16/4/2019: CentOS Turns 15, Qt Creator 4.9.0 Released

    Links for the day



  12. GNU/Linux is Being Eaten Alive by Large Corporations With Their Agenda

    A sort of corporate takeover, or moneyed interests at the expense of our freedom, can be seen as a 'soft coup' whose eventual outcome would involve all or most servers in 'the cloud' (surveillance with patent tax as part of the rental fees) and almost no laptops/desktops which aren't remotely controlled (and limit what's run on them, using something like UEFI 'secure boot')



  13. Reader's Claim That Rules Similar to the Code of Conduct (CoC) Were 'Imposed' on LibrePlanet and the FSF

    Restrictions on speech are said to have been spread and reached some of the most liberal circles, according to a credible veteran who opposes illiberal censorship



  14. Corporate Media Will Never Cover the EPO's Violations of the Law With Respect to Patent Scope

    The greed-driven gold rush for patents has resulted in a large pool of European Patents that have no legitimacy and are nowadays associated with low legal certainty; the media isn't interested in covering such a monumental disaster that poses a threat to the whole of Europe



  15. A Linux Foundation Run by People Who Reject Linux is Like a Children's Charity Whose Management Dislikes Children

    We remain concerned about the lack of commitment that the Linux Foundation has for Linux; much of the Linux Foundation's Board, for example, comes from hostile companies



  16. Links 15/4/2019: Linux 5.1 RC5 and SolydXK Reviewed

    Links for the day



  17. Links 14/4/2019: Blender 2.80 Release Plan and Ducktype 1.0

    Links for the day



  18. 'Poor' (Multi-Millionaire) Novell CEO, Who Colluded With Steve Ballmer Against GNU/Linux, is Trying to Censor Techrights

    Novell’s last CEO, a former IBMer who just like IBM decided to leverage software patents against the competition (threatening loads of companies using "platoons of patent lawyers"), has decided that siccing lawyers at us would be a good idea



  19. Guest Post: The Linux Foundation (LF) is “Putting the CON in Conference!” (Part 2)

    Calls for papers (CfP) and who gets to assess what's presented or what's not presented is a lesser-explored aspect, especially in this age when large corporate sponsors get to indirectly run entire 'community' events



  20. Patent Maximalists Are Enabling Injustices and Frauds

    It's time to come to grips with the simple fact that extreme patent lenience causes society to suffer and is mostly beneficial to bad actors; for the patent profession to maintain a level of credibility and legitimacy it must reject the deplorable, condemnable zealots



  21. Further Decreasing Focus on Software Patents in the United States as They Barely Exist in Valid Form Anymore

    No headway made after almost 4 months of Iancu-led stunts; software patents remain largely dead and buried, so we’re moving on to other topics



  22. Links 13/4/2019: Wine 4.6 and Emacs 26.2 Released

    Links for the day



  23. Links 12/4/2019: Mesa 19.0.2, Rust 1.34.0 and Flatpak 1.3.2 Released

    Links for the day



  24. Caricature: EPO Standing Tall

    A reader's response to the EPO's tall claims and fluff from yesterday



  25. The EPO is Slipping Out of Control Again and It's Another Battistelli-Like Mess With Disregard for the Rule of Law and Patent Scope

    The banker in chief is just 'printing' or 'minting' lots and lots of patents, even clearly bogus ones that lack substance to back their perceived value



  26. Global Finance Magazine Spreads Lies About the Unitary Patent and German Constitutional Court

    Alluding to the concept of a "unified European patent," some site connected to Class Editori S.p.A. and based in Manhattan/New York City tells obvious lies about the Unified Patent Court (UPC), possibly in an effort to sway outcomes and twist people's expectations



  27. New Building as Perfect Metaphor for the EPO Under the Frenchmen Battistelli and Campinos

    The EPO is in "propaganda mode" only 9 months after the latest French President took Office; the Office is seen as dishonest, even under the new leadership, which routinely lies to the public and to its own staff



  28. Links 11/4/2019: Twisted 19.2.0 Released, Assange Arrested

    Links for the day



  29. EPO Still Wasting Budget, Paying Media and Academics for Spin

    EPO money continues to flow like water into hands that are complicit in legitimising the EPO's management and policies; this highlights the grave dangers of lack of oversight at the EPO, not to mention lawlessness or lack of enforcement



  30. Links 10/4/2019: Microsoft's GDPR Trouble, New Fedora 29 Images

    Links for the day


CoPilotCo

RSS 64x64RSS Feed: subscribe to the RSS feed for regular updates

Home iconSite Wiki: You can improve this site by helping the extension of the site's content

Home iconSite Home: Background about the site and some key features in the front page

Chat iconIRC Channel: Come and chat with us in real time

CoPilotCo

Recent Posts