As part of a severance deal with Windows president Steven Sinofsky, Microsoft prohibited him from joining any one of these seven companies until 2014. Which is the one it should most worry about?
Microsoft is so bent out of shape about seven of its rivals, it even named them specifically in a severance contract with one of its most senior executives.
Website GigaOM reported today that, as part of his severance agreement, former Windows president Steven Sinofsky would not seek employment from some of the Microsoft’s fiercest competitors.
The agreement was made public in Microsoft’s most recent 10K, filed yesterday. Specifically, it says (on page 111, Exhibit 10.19, for those of you who want to read this):
Steven agrees that he will not for a period of twelve (12) months after the Separation Date (a) accept direct or indirect employment with the following companies, Amazon, Apple, EMC, Facebook, Google, Oracle, VMWare;
You must admit that using Sinofsky’s given name was a nice touch. The ban lasts until 2014.
(Related: Microsoft losing money on Surface tablets)
To be sure, Microsoft also gave Sinofsky millions of reasons not to send his resume out to those companies. About $8.5 million worth of reasons, as that’s what his severance compensation was worth.
So, of all of the companies Microsoft doesn’t want to see Sinofsky work for, which one do you want to see work for you and your portfolio?
Talking Numbers asks that question to CNBC contributor Steve Cortes, Founder of Veracruz TJM and Talking Numbers contributor Richard Ross, Global Technical Strategist at Auerbach Grayson. Cortes says there’s one on that list he particularly likes and Ross looks at that company’s charts.
To hear Cortes and Ross analyze the biggest threat to Microsoft, watch the video above.
- Steven Sinofsky