After departing Microsoft (NASDAQ:MSFT) in November 2012, Steven Sinofsky, the former president of the tech giant's Windows division, and Microsoft have reached a "retirement agreement," according to an SEC document filed this week.
Sinofsky will receive "the value of his outstanding unvested stock awards granted prior to fiscal year 2013 and 50% of the shares of stock awarded for his performance during fiscal year 2013," according to the SEC filing. Sinofsky's stock awards under the new agreement total 418,361, or approximately $14 million based on Microsoft's current share price of $33.67. The value of the stock awards will be paid over time, through August 2016, and will be based on Microsoft's share price at the time of payment.
In return for the stock awards, Sinofsky's retirement agreement contains several conditions, including not accepting employment with "certain competitors," nor can he encourage current Microsoft employees to leave the company, or suggest existing customers choose a competitor's products or services. The non-compete commitment expires at the end of 2013.
Additionally, Sinofsky has agreed to not "disparage Microsoft" and to "cooperate in litigation brought by or against Microsoft," the SEC filing states, and must adhere to certain provisions of Microsoft's non-disclosure agreement, including not disclosing intellectual property rights or any Microsoft and third-party information.
Sinofksy left the company 23 years after joining Microsoft as a software design engineer.