Microsoft board cut in size as a director retires

LOS ANGELES: Microsoft Corp. said that William Reed, one of the company's longest-serving directors, had decided to retire, and would not be replaced, reducing the size of the company's board from 10 members to nine.

Reed, formerly chairman of Simpson Investment Company, joined Microsoft's board in October 1987 -- about a year and a half after the software maker's initial public offering.

The Redmond, Washington based company said that Reed would be replaced as the chairman of its audit committee by Charles Noski, chief financial officer of Northrop Grumman Corp. It said Ann McLaughlin Korologos would also join the audit committee.

Microsoft said in a statement that Reed, 65, who has also served as a director for The Seattle Times and Washington Mutual Inc. had decided to limit his business commitments to spend more time on personal matters.

The changes to Microsoft's board were due to be finalized at the company's shareholder meeting in November.

In a proxy statement, Microsoft also asked shareholders to approve changes to stock compensation for non-employee directors and the terms for performance awards under a stock plan approved in 2001.

Shareholders were also asked to ratify Deloitte & Touche as the company's auditor.