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Microsoft forgives $15 million loan for former exec; he forfeited options in exchange

Time: 07:52 EST/12:52 GMT | News Source: Associated Press | Posted By: Robert Stein

Microsoft Corp. forgave a $15 million loan to outgoing company President Rick Belluzzo when he resigned last spring, according to the company's annual report. In exchange, Belluzzo forfeited options to buy 3.5 million shares of stock, according to the report filed late last week with the Securities and Exchange Commission. The kind of loan granted Belluzzo became illegal July 30 under the Sarbanes-Oxley Act, passed after outcry over excessive corporate compensation and scandal.

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