NEW YORK (TheStreet) -- Microsoft (MSFT) shares are down 1.15% to $48.20 on Wednesday after one of the global tech giant's proxy advisers recommended that shareholders vote against the proposed pay package for the company's new CEO.
The Institutional Shareholder Service believes that shareholders should vote against approving new CEO Satya Nadella's pay package at the company's annual meeting next month due to what it calculated to be $65 million worth of restricted stock grants, according to the Wall Street Journal.
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Though none of the shares vest until 2019, the firm said that certain loopholes will allow Nadella to sell up to a fourth of her shares through the vesting period, even if the company's stock under performs the market.
Microsoft's annual shareholder meeting will take place December 3 in Bellvue, WA.
TheStreet Ratings team rates MICROSOFT CORP as a Buy with a ratings score of A-. TheStreet Ratings Team has this to say about their recommendation:
"We rate MICROSOFT CORP (MSFT) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its solid stock price performance, revenue growth, largely solid financial position with reasonable debt levels by most measures, reasonable valuation levels and good cash flow from operations. We feel these strengths outweigh the fact that the company has had sub par growth in net income."