Microsoft's tactics

No surprises in the end when the US district judge Thomas Penfield Jackson finally ruled on the penalties in the Microsoft case, having earlier found the company guilty of anti-competitive practices. The judge essentially backed the federal and states' proposal to split the company in two and the company immediately confirmed its avowed intention to appeal.

More interesting are some of the manoeuvrings going on around the case. In an effort to get a speedy resolution, the victors are pushing for a hearing by the supreme court, while the company seems content to talk the plan to death through countless appeals, initially to lower courts.

If Bill Gates and Steve Ballmer are so sure of their cause is right, it seems strange that they would want to delay Microsoft's vindication in this way. After all, everyone knows this one is going to end up in the supreme court. Like all software companies, Microsoft is only as good as the people writing and producing its products. The ongoing uncertainty can do little to reassure such individuals at a time when jobs are readily available within the industry, both in the US and here.

Crucially, the managing director of Irish operations, Kevin Dillon, while confident of retaining and finding staff, said applicants were asking more questions and employees were keeping a weather-eye on the stock price.

Stock options have been a key element of Microsoft remuneration over the years. With the price now 40 per cent off its high, how much longer can even enhanced stock packages hold their allure?