Microsoft Awards $951 Million Worth of Stock

Microsoft(MSFT Quote) on Thursday handed out performance bonuses of restricted stock worth nearly $1 billion to roughly 900 senior executives.

The company stopped employing stock options as a method of payment about three years ago and replaced the grants with a system of performance bonuses for work done over several years.

Jeff Raikes, who heads Microsoft's business division, received the largest grant -- 875,334 shares -- bringing his ownership stake in the software company to 5.5 million shares, according to a filing with the Securities and Exchange Commission.

Neither Chairman Bill Gates nor CEO Steve Ballmer was on the bonus list.

The company delivered a total of 37 million shares of stock worth $951 million at Thursday's closing price of $25.70 a share.

One-third of the shares vested immediately; the remainder will vest over the next two years, the company said. Shares of Microsoft closed the regular session off 10 cents to $25.70.