Former Microsoft CEO Steve Ballmer To Pocket $1B Annually In Dividends

Former Microsoft Corp (NASDAQ:MSFT) CEO Steve Ballmer is set to earn an astounding $1 billion yearly in dividends from his considerable holdings in the tech giant.

What Happened: Ballmer, currently the sixth richest individual globally and the most significant private stakeholder in Microsoft, is poised to earn roughly $1 billion each year in dividends. Ballmer’s ownership of nearly 333.2 million shares, about 4% of the company, was last revealed in 2014, according to a Business Insider report on Sunday.

Ballmer’s share in Microsoft, which he amassed during his 34-year stint at the company, is estimated at around $130 billion, a figure buoyed by a 56% surge in Microsoft’s stock price this year. In 2023, based on his holdings, Microsoft’s dividend payment of $2.79 per share resulted in nearly $930 million going to Ballmer.

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As Microsoft recently hiked its dividend by 10% to $3 per share, Ballmer’s annual dividend payment in 2024 is expected to increase, potentially exceeding $1 billion should Microsoft continue its pattern of yearly dividend increases.

Why It Matters: Ballmer, who once served as an assistant to Bill Gates at Microsoft, is now on the cusp of becoming the world’s fourth-richest individual, nipping at the heels of Larry Ellison and his former boss, Bill Gates. In November, Ballmer’s net worth stood at $108.7 billion, just $5 billion behind Gates. This is a remarkable rise, considering Gates’ significant charitable donations since leaving Microsoft.

Ballmer’s escalating wealth, powered by his substantial stake in Microsoft and its prosperous performance, is set to propel him further up the ranks of the world’s wealthiest individuals.

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