Earned 1.29 Trillion Won Without Doing Anything... This Person Owns 333.2 Million MS Shares

Receive Dividends Regardless of Performance by Owning MS Shares

Steve Ballmer, former CEO of Microsoft (MS), is estimated to receive $1 billion (approximately 1.29 trillion KRW) in stock dividends next year.

On the 27th (local time), CNN Business reported that after MS raised its quarterly dividend to 75 cents per share, or $3 annually, Steve Ballmer is expected to receive $1 billion in dividends for the 2024 fiscal year. When Ballmer last disclosed his ownership in 2014, he held 333.2 million MS shares, equivalent to a 4% stake in the company. According to CNN, Ballmer is the sixth richest person in the world, and according to Bloomberg, he ranks fifth globally.

CNN explained that Ballmer will receive this huge dividend simply because he holds the shares, regardless of any actions or company performance this year. Ballmer will continue to receive dividends as long as MS does not lower its dividend payout ratio. MS has been increasing dividends continuously since it started paying them to shareholders in 2003.

In 2018, ProPublica reported that Ballmer declared $656 million in income to the U.S. Internal Revenue Service. Since the dividend tax rate for individuals earning over $500,000 annually is 20%, Ballmer will have to pay nearly $200 million (approximately 258 billion KRW) in taxes on the $1 billion dividend he is set to receive.

Meanwhile, Warren Buffett’s Berkshire Hathaway is also expected to receive $6 billion (approximately 7.74 trillion KRW) in dividends this year. Berkshire Hathaway holds large amounts of shares in companies such as Chevron, Bank of America (BoA), Apple, Coca-Cola, Kraft Heinz, and American Express, most of which are paying dividends this year. To mark this year’s Thanksgiving, Warren Buffett donated $870 million (approximately 1.13 trillion KRW) worth of Berkshire Hathaway stock to his family foundation.