[News Figures] "MS Stock Hits Jackpot"... Former CEO Richer Than Bill Gates

Gates' '50-Year Friend' Former CEO Steve Ballmer
Over 90% of Assets in MS Stock
Wealth Value Soars with Last Year's Stock Surge

As Microsoft (MS) stock soars, a former MS CEO has emerged whose wealth surpasses that of MS founder Bill Gates. This is Steve Ballmer, a longtime friend of Gates for 50 years and considered one of MS's founding members.

Bloomberg reported on the 1st (local time) that former CEO Ballmer's net worth reached $157.2 billion (approximately 217.6 trillion KRW), surpassing founder Gates's $156.7 billion, placing Ballmer as the world's 6th richest person. Bloomberg noted this is the first time MS executives have exceeded Gates's wealth.

Microsoft (MS) founder Bill Gates (left in photo) and former CEO Steve Ballmer Photo by AP News

Ballmer's wealth surpassed Gates's thanks to MS stock. As MS, partnering with OpenAI?the developer of ChatGPT?has risen as a leader in the AI boom, MS stock surged sharply since last year, significantly increasing the value of Ballmer's large stock holdings. MS stock rose 103% from $224.93 on January 6 last year to $456.73 on this day.

Ballmer, who led MS from 2000 to 2014, holds over 90% of his wealth in MS stock, amounting to more than $140 billion. He is estimated to own a 4% stake in MS. In a 2018 interview, Ballmer stated he was the largest individual shareholder. In contrast, Gates's MS stock holdings are valued at less than $30 billion. Half of Gates's assets are in Cascade Investment, an investment firm created by selling MS shares, with the rest diversified.

Earlier this year, Ballmer also drew attention for his massive MS stake. In January, MS paid a dividend of 74 cents per share, and reports said Ballmer received $1 billion. Although he paid $200 million in taxes, the news of a dividend exceeding 1 trillion KRW itself became a hot topic.

Born in 1956, Ballmer is a 50-year friend of Gates. He entered Harvard University in 1973 and is known to have become close to Gates, who is one year older, by playing poker together in college. Gates later dropped out to found MS, while Ballmer enrolled in Stanford Graduate School of Business (MBA). During this time, Gates, needing talent, reached out to Ballmer, who joined MS in June 1980.

Ballmer reportedly received MS stock from the time he joined. Ballmer, who had dreamed of a professorship, was swayed by Gates's stock offer. After receiving shares and joining, Ballmer oversaw MS's management areas such as administration, accounting, and sales, and was regarded as MS's 'number two' after Gates. At one point, Ballmer's MS stake reached 8%, but he sold some shares, reducing it to 4%.

Ballmer succeeded Gates as CEO in 2000 and led the company for 14 years before handing over the position to current MS CEO Satya Nadella in 2014 and retiring from active duty. Opinions on Ballmer's management skills are mixed. While he helped MS's innovation as the second-in-command, his 14 years as CEO are criticized for failing to respond effectively to mobile trends.