What is Steve Ballmer's Net Worth and Salary?
Steve Ballmer is an American businessman and sports team owner with a net worth of $145 billion. Most of his wealth comes from his 333.3 million shares of Microsoft stock, accounting for roughly 4% of the total shares. Comparatively, company co-founder Bill Gates owns about 1.3% of Microsoft. When Microsoft went public in 1986, Ballmer owned 8% of the company, while Paul Allen owned 25%, and Bill Gates controlled 45%.
On July 2, 2024, with Microsoft shares rising by 21% year-to-date, Ballmer's net worth surpassed that of Bill Gates for the first time, making him the sixth richest person in the world. Gates could have been the world's first trillionaire in January 2024 if he had retained a 30% stake in Microsoft, down from 45% during the 1980s/1990s Read more here.
Despite his immense wealth, Ballmer honors his father, a Ford manager, by still driving a Ford.
Early Life
Steven Anthony Ballmer was born on March 24, 1956, in Detroit, Michigan. Raised in Farmington Hills, he lived in Brussels from 1964 to 1967, attending the International School of Brussels. Ballmer pursued his passion for mathematics and engineering at Lawrence Technical University and Detroit Country Day School before enrolling at Harvard University. He graduated magna cum laude in 1977 with a degree in applied mathematics and economics, managing the football team and contributing to various college newspapers. It was here that Ballmer met Bill Gates.
Microsoft
In 1980, Gates convinced Ballmer to leave Stanford Graduate School of Business to become Microsoft's first business manager. Initially offered a $50,000 salary with no equity, Ballmer accepted an 8% equity stake after profits soared. By the time Microsoft went public in 1986, Ballmer's net worth was $85 million. He continued to grow within Microsoft, eventually becoming CEO in 2000.
During his tenure, he tripled sales and doubled profits, but Microsoft's share value remained stagnant. Ballmer led Microsoft into new sectors, creating the Xbox division and popularizing Skype, but missed out on trends like smartphones. He retired from Microsoft in 2013.
Steve Ballmer Net Worth Milestones
- 1986 (IPO Day) – $85 million
- 1987 – $270 million
- 1995 -$2 billion
- 1997 – $6 billion
- 1999 – $13 billion
- 2008 – $10 billion
- 2014 – $24 billion
- 2017 – $33 billion
- 2018 – $42 billion
- 2019 – $45 billion
- 2020 – $77 billion
- 2021 – $101 billion
- 2022 – $88 billion
- 2023 – $130 billion
- 2024 – $157 billion
Acquisition of the LA Clippers
Ballmer had long harbored ambitions of buying an NBA team. In 2014, after Donald Sterling's lifetime ban from the NBA, Ballmer purchased the LA Clippers for a record $2 billion. Today, the Clippers are valued at $4 billion.
Ballmer's strategic acquisition of the Forum in Inglewood for $400 million in 2020 paved the way for a new 18,000-seat stadium scheduled for completion in 2024.
Dividend Earnings
Starting in 2024, Microsoft will pay a dividend of $3 per share, equaling a $1 billion annual dividend for Ballmer. Over the years, he has earned $13 billion through stock sales and dividends.
Real Estate
Ballmer has invested in several high-profile real estate properties. In 2020, he purchased a historic property in Hunts Point, Washington, for $9.8 million. He also has a significantly valuable home bought in 1987. Additionally, his acquisition of the Forum in Inglewood for $400 million in 2020 was a strategic move for his Clippers team.
Salary
During his tenure as CEO, Ballmer earned approximately $1.275 million per year. This included a base salary of about $666,000, a cash bonus of $600,000, and miscellaneous compensation of roughly $11,000.
