Bonum Certa Men Certa

Microsoft May be Hiding Something Big as It Pays All Its CFOs Millions of Dollars to Keep Quiet After Financial Fraud Whistleblowing

"Microsoft, the world’s most valuable company, declared a profit of $4.5 billion in 1998; when the cost of options awarded that year, plus the change in the value of outstanding options, is deducted, the firm made a loss of $18 billion, according to Smithers."

--The Economist, 1999



Summary: Yet another CFO receives a lot of money to keep his mouth shut about Microsoft's accounting practices

A SUBJECT we covered a couple of times this morning (Microsoft's CFO leaving after cooking the books) merits an update as a separate post. A reader showed us a report titled "Microsoft to pay departing CFO Klein $2M for non-compete, secrecy promises", which echoes what Microsoft did when its previous CEO (Mr. Liddell) left. Remember that Charles Pancerzewski, who had worked for Microsoft in accounting, was paid $4 million to keep quiet [1, 2]. He got this money after had revealed systematic financial corruption at Microsoft. The issue got buried thereafter. Here is what the latest report says:



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.


Microsoft needs to be raided again and properly investigated with no option of settlement (bribery) to stop the process. It sure seems like there is systematic bribery whose purpose is to cover up misconduct. Unless or until all those briberies stop we can -- within reason -- assume Microsoft to be guilty but too big to jail. "Big to jail" means that you are capable of paying people to subvert the course of justice, be it by ousting someone(s) or bribing someone(s).

Comments

Recent Techrights' Posts

Over at Tux Machines...
GNU/Linux news for the past day
This Saturday It's Gonna be 3.5 Years* Since Russia Invaded Ukraine. No Microsoft Protests Against Microsoft Having Provided Russia With Services.
Companies do not have consistent policies and enforcement of "corporate values" is somewhat of an egg salad
 
Links 23/08/2025: onmicrosoft.com as Spam Cannon, The Cheeto-Intel Deal Is Official
Links for the day
Wired Complained About LLM Slop Only Days Before It Got Caught Doing That Itself
Never throw stones in a glass house
IBM "Value" Down 14.16% in a Month, Red Hat Layoffs Allegedly Discussed 12 Days Ago
"IBM is a dinosaur. Dinosaurs get extinct when the don't keep up."
We're Seeing More Countries Where Windows Isn't Even in Second Place Anymore (Third or Worse)
In a way, Microsoft can barely even hold onto second place anymore
The US Government is Now in the Business (Literally!) of Saving Microsoft and Intel
This means that President TACO/Cheeto now has grater financial incentive to also prop up Microsoft and Windows
Microsoft Workers on Canonical's Payroll
If you want something that's sort of like Ubuntu but is not controlled by Canonical, then look into Linux Mint, Debian, or LMDE
GNU/Linux Climbs to 4% in Sierra Leone
Sierra Leone isn't a very rich country (to say the least), but it's better off than some of its neighbours
The SLAPPS Run Out of Oxygen Because They're Abuse of Process
At the end of the day we plan to publish over 1,000 articles explaining what happened
The Register MS Gets Paid by the Employer of the Previous Editor in Chief to Promote the "AI" Ponzi Scheme, Which Does Considerable Damage to the Web and to Online Journalists
The Register MS can 'badmouth' slop all it wants; it gets paid to inflate this bubble. It's actively participating in it.
Soon It'll be Autumn, Time to Repair Things
Where they don't charge an arm and a leg
Doing Our Best to Cover Software Patents When the Mainstream Media Does Not
Even the FSF has its limits
Gemini Links 23/08/2025: August Questions and Network Solutions
Links for the day
IRC Proceedings: Friday, August 22, 2025
IRC logs for Friday, August 22, 2025
Microsoft Has Issues in Guyana
It's not just Guyana
About 25% of the "Linux" News/Results in Google News Today Are LLM Slop, Almost 20% From the Same Rogue Operators of Slopfarms
Google, which tries to market itself as an LLM giant, apparently fails to understand what's wrong with it
Harassing People on Holiday
There are "no-go areas"; but that assumes all laws firms have ethical standards
The Great, Undeniable Value of Paper Trail, Not Purely Digital Systems
Suppose you have nothing but bits on someone else's computer and "word of mouth"...
The Company Behind Ars Technica, Reddit and Wired Caught Publishing LLM Slop (It Also Admits It Now)
Condé Nast busted
Links 22/08/2025: Lagrange 1.18.8, Wired Magazine and Business Insider Caught Resorting to LLM Slop
Links for the day
Slopwatch: Sites Gone Rogue, Google Promoting Lies, and DDoS Attacks by Plagiarism Giants
Charlatans and frauds engage in a war against artistic industries, mislabeling plagiarism as "AI"
Links 22/08/2025: Cisco Layoffs, LA Times Says "AI Hype is Fading Fast"
Links for the day
Gemini Links 22/08/2025: K for Kentucky and Caddy Versus LLM Slopbots
Links for the day
The "End Software Patents" Initiative of the FSF Explains "WHY [to] ABOLISH SOFTWARE PATENTS"
We hope to cover patent-related issues more and more as the big anniversary of the FSF approaches
Freenode Sniffing
The grown-ups left the building
The Only Thing Worse Than Misinformation is Misinformation Sold to Everyone as "Intelligence"
Misplaced trust is worse than none at all
The Register MS Now Openly Admits LLM Hype Does Damage, But It's Also Being Paid to Participate in the LLM Hype (With Paid 'Articles' and 'Webcasts' for Paying Advertisers)
The Register MS gets paid to do this
End of the Smartphone Era? No.
Maybe the media should focus on producing accurate, factual news
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Thursday, August 21, 2025
IRC logs for Thursday, August 21, 2025
Enshittification of Airports, Airlines, and Airplanes
If people are willing to tolerate standard declines and enshittification (nowadays sold as "pivot to AI" or "replaced by AI" or "AI layoffs") they will pay for it some other way
Latest Is Not Greatest: The Case of "Foldable" Tech
don't be shamed into abandoning old things just because the "fashion industry" of Apple and Samsung tells you to
Airlines and Their Tricks That Only Work in the 'Digital Age'
People sceptical of the direction technology has taken are not "Luddites"
Open Source Initiative (OSI), Which Became a Propaganda Front of Microsoft and "Hey Hi" (Hype, Misnomer), Wants You to Forget These Scandals
A lot of these issues won't be set aside until there's a resolution
The Culture of Overnight Coding
An industry-wise push-back is needed
Windows Down to New Lows in Guinea Bissau and Many Countries Around It
If Android is accounted for, Windows is down to about 10%
Gemini Links 21/08/2025: Modern Dating, Debian 13, and Apache
Links for the day
Microsoft Has Had About 10 Waves of Mass Layoffs So Far This Year (Not Two as Mainstream Media and Slopfarms Endlessly Claim)
Notice how the MSM (Mainstream Media) never mentions the debt of Microsoft. It is a conscious, deliberate decision.
Links 21/08/2025: Covid Cases on the Rise, "Social Media Trolls", Russia's Attacks Intensify
Links for the day
Gemini Links 21/08/2025: The Attraction of Back Alleys, Initramfs, and BSD ISPs
Links for the day
Links 21/08/2025: Stephanie Shirley Dies and "Groklaw Domain Hijacked?"
Links for the day
Search in 2025 (Age of DDoS Attacks Under the Guise of "AI" "Innovation")
One common concern when things go "live" is that any random bot out there can execute queries, pumping up RAM and CPU usage, as happened when we used MediaWiki and WordPress
Using Slop for Images Does Not Make Your Site Look Advanced or Witty, It Just Makes Your Whole Work Look Like Presumed Plagiarism
Lazy slobs and Serial Sloppers use the guise/excuse of "AI" to plagiarise and spam the Web
Financing of the "Hey Hi" (AI) Bubble by Those Who Profit From Planetary Destruction (Global Warming)
It's about personal gain, too
Richard Stallman Will Speak in Ethereum Cypherpunk Congress
it's good to see that the FSF pays considerable respect to it founder, who is moreover invited to speak at events
(At Least) Second Wave of Mass Layoffs in Microsoft This Month
This is not the first time this month that Microsoft has mass layoffs
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Wednesday, August 20, 2025
IRC logs for Wednesday, August 20, 2025