Microsoft to increase directors, recruiting outsiders

Microsoft has announced plans to expand its board to 10 directors, adding two more overseers from outside the company.

This decision comes after recent changes at the Redmond Washington-based software maker aimed at improving corporate governance. Under pressure from shareholders, Microsoft raised its dividend last week.

The nominations by the company's board, are Charles Noski, a former vice chairman of AT&T and Helmut Panke, chairman of the management board at BMW. The nominations will be put to a shareholder vote at the company AGM in November.

Earlier this year, Microsoft restructured its financial department to more closely track the performance of its individual business units. It also started awarding stock grants instead of options that dilute the company's shares.

Microsoft shares rose 22 cents to $28.72 in early Nasdaq trading, close to a 52-week high of $29.48 set in December.