Former Microsoft CEO Steve Ballmer Set To Earn $1 Billion a Year For 'Doing Nothing'; Here's a Look at His Net Worth

Steve Ballmer's Current Net Worth

Businessman, sports team owner, and ex-Microsoft CEO, Steve Ballmer has an estimated net worth of $131 billion as of January 2, 2024, according to Bloomberg. Most of Ballmer's net worth is derived from his shares of Microsoft stock. He is estimated to be the company's largest individual shareholder and he has collected billions in dividends from the stock.

Ballmer is set to make about $1 billion in passive income from Microsoft dividends in 2024, as per CNN. This comes as the tech giant increased its quarterly dividend payout to 75 cents a share, or $3 a share annually. As per the publication’s estimate, Ballmer is said to own over 330 million shares of the company.

Sources of Income

Career with Microsoft

Ballmer and Bill Gates studied in the same classes at Harvard University and were good friends. While Gates dropped out of school to start his own business, Ballmer stayed to complete his education. Gates went on to establish Microsoft and Ballmer graduated from Harvard University in 1977 with bachelor's degrees in mathematics and economics. After his graduation, Ballmer joined Procter & Gamble where he worked for two years. He then went on to pursue an MBA at Stanford University, but he dropped out of Stanford when Gates offered him to work for Microsoft. In 1980, Ballmer joined Microsoft as its 24th-ever employee.

Ballmer and Gates developed a strong connection both on a personal and professional level. Ballmer was put in charge of many Microsoft divisions, such as sales and the .NET framework. In 2000, the power transitioned from Gates to Ballmer, and he became the company's new CEO.

Gates remained as the chairman of the board and guided the overall vision of the company. Ballmer led Microsoft into new territory, creating the Xbox division and helping popularize Skype.

However, he failed to capitalize on the smartphone trend and lost billions in ill-advised acquisitions, such as Nokia, and failed products such as the Surface. He faced severe criticism and under the pressure of it, he finally retired from Microsoft in 2013, at age 58.

During his stint as CEO of Microsoft, Ballmer earned a total salary of approximately $1.275 million. However, at the time of his retirement, Ballmer held a four percent stake in the company, which made him the largest shareholder.

Steve Ballmer’s Billion Dollar Passive Income

Ballmer reported an annual income of $656 million to the Internal Revenue Service in 2018, according to ProPublica. This is estimated to have been derived from his shares in Microsoft stock. Further, as per CNN, with the equivalent of a 4% stake in Microsoft, Ballmer is set to receive just shy of $1 billion in fiscal year 2024. This will be simply owning the stock regardless of its performance.

However, his income will be subject to the 20% tax on dividends which means he’ll pay close to $200 million in taxes. Ballmer is estimated to have collected over $12 billion from dividends and the sale of Microsoft shares, as of December 2022, according to Bloomberg.

Total Assets

The Los Angeles Clippers

In 2014, Ballmer acquired the NBA team The Los Angeles Clippers. The team is currently valued at $4.56 billion by Forbes. Ballmer who previously tried to acquire other teams, made an offer of $2 billion to purchase the team. The offer was accepted and he became the new owner of the team. Ballmer is said to have sold about 14 million share of Microsoft to make the purchase, as per Bloomberg.

Real Estate

Ballmer purchased a property in Hunts Point, Washington for $9.8 million in 2020. The historic property was built in 1902 and features 3,790 square feet of living space. Earlier in 1987, Ballmer along with his wife purchased a home in Seattle for $1.325 million. The property is currently estimated to be valued at over $12 million, as per Celebrity Net Worth.

After buying the LA Clippers, Ballmer further purchased The Forum in Inglewood for $400 million in 2020. The Forum was previously the home of the LA Lakers, who later moved to the Staples Center. Ballmer has spent millions more to develop the Forum and its construction is set to finish in 2024.

Net Worth Over The Years

Personal Life

Steve Ballmer married Connie Snyder in 1990 and the two continue their relationship and work as partners in philanthropic endeavors. They have three sons, Sam, Peter, and Aaron Ballmer.

Philanthropy

Ballmer co-founded the Ballmer Group which is a philanthropic investment company. Since 2014, he has put over $2 billion into the donor-advised fund, with a focus on economic mobility.

Further in 2022, Ballmer and Connie donated about $425 million to the University of Oregon to create an institute aimed at the behavioral and mental health needs of children in the state, as per Forbes.

FAQs

How old is Steve Ballmer?

Steve Ballmer is 67 years old.

How did Steve Ballmer make his money?

Ballmer served as the CEO of Microsoft for nearly 14 years. He is currently estimated to be the largest shareholder of the company earning millions in dividends. He further owns the NBA team, Los Angeles Clippers which is valued at $4.65 billion.

What is Steve Ballmer doing now?

Steve Ballmer is the current owner of the Los Angeles Clippers and he serves as the co-founder of Ballmer Group, a philanthropic investment company.

Who was the CEO of Microsoft before Steve Ballmer?

Steve Ballmer became Microsoft's second CEO of Microsoft succeeding Bill Gates.

What degree does Steve Ballmer have?

Steve Ballmer holds bachelor's degrees in mathematics and economics from Harvard University.

How much does Steve Ballmer make from Microsoft Stock?

Steve Ballmer is estimated to make nearly $1 billion in 2024 (before taxes) from Microsoft Stock.

Who is richer Bill Gates or Steve Ballmer?

With a net worth of $141 billion, Bill Gates is estimated to be richer than Steve Ballmer ($131 billion).

Does Bill Gates still own Microsoft?

Bill Gates reportedly holds a 1.38% stake in Microsoft, which is equivalent to 103 million shares.

What is Steve Ballmer’s Net Worth?

Steve Ballmer has an estimated net worth of $131 billion as of January 2, 2024, according to Bloomberg.