Last Updated on April 24, 2023 by Ben
American entrepreneur, investor, and philanthropist Steve Ballmer have a net worth of $50.7 billion. He served as the company’s Chief Executive Officer (CEO) of Microsoft Corporation from January 2000 until February 2014.
As CEO, Ballmer oversaw the company’s transition from a pioneer in the personal computing market to one that offers a broader range of cloud computing, mobile devices, search, and gaming services.
Ballmer has held positions on multiple corporate boards and participated in several philanthropic initiatives in addition to his duties as the CEO of the Microsoft Corporation. He is the Los Angeles Clippers’ Board Chairman and a Partner at the venture capital firm M12.
What is Steve Ballmer’s Net Worth and Salary?
Steve Ballmer is a $100 billion-dollar-worth American businessman and sports club owner. Steve Ballmer’s riches stem from his long career at Microsoft, where he served as the company’s second CEO after co-founder Bill Gates stepped down in 2000. Today, Ballmer is most recognized for owning the Los Angeles Clippers.
His extremely high net worth places him among the world’s wealthiest individuals. The majority of his fortune is made up of Microsoft stock.
Steve Ballmer’s net worth is generated mainly from his 333.3 million shares of Microsoft stock. He has sold $3.4 billion in stock and received nearly $4.5 billion in dividends.
Despite being a multi-billionaire, Ballmer drives a Ford in honor of his father, a Ford manager.
Ballmer succeeded firm founder Bill Gates as CEO in 2000.
He received a basic salary of $1.35 million as CEO. Ballmer announced in August 2013 that he would step down as CEO in a year. On February 4, 2014, Satya Nadella was appointed CEO of Microsoft.
Steven Anthony Ballmer was born in Detroit, Michigan, on March 24, 1956. His father, Frederic Henry Ballmer, worked for Ford Motor Company as a manager. Ballmer reportedly still drives a Ford to honor his father. Despite being reared in the upscale Farmington Hills neighborhood, Steve Ballmer lived in Brussels from 1964 to 1967 and attended the International School of Brussels.
After studying engineering and math at Lawrence Technical University and Detroit Country Day School, Ballmer went to Harvard University, earning a Bachelor of Arts in applied mathematics and economics in 1977. Ballmer managed the football squad during college and wrote for different college newspapers. He also met Bill Gates, a fellow student.
Ballmer then worked as an associate product manager for Procter & Gamble. Dissatisfied with his corporate existence, Ballmer attempted to have two screenplays produced in Hollywood. He was enrolled in the Stanford Graduate School of Business by 1980.
Career with Microsoft
Bill Gates persuaded Ballmer to leave Stanford and become Microsoft’s first business manager in 1980. Over the next two decades, Gates and Ballmer developed a deep personal and professional bond with one another. He oversaw various Microsoft departments, including sales and the.NET framework.
The balance of power shifted from Gates to Ballmer in 2000, and he became the company’s new CEO. Nonetheless, Gates remained board chairman and oversaw Microsoft’s broader vision. For the first time, real tensions began to emerge between the duo. Ballmer’s management style at Microsoft has received mixed reviews. While he quadrupled sales and doubled earnings, the company’s share price remained flat. Furthermore, many observers think that Ballmer missed out on significant trends.
Of course, Ballmer did take Microsoft into new terrain by establishing the Xbox division and popularizing Skype. Nonetheless, Ballmer missed the smartphone wave, famously slamming Apple’s iPhone as a waste of time. He has lost billions of dollars in ill-advised acquisitions like Nokia and unsuccessful devices like the Surface. After being dubbed the worst CEO by various magazines, Steve Ballmer began to feel the strain. He finally 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
Acquisition of the LA Clippers
Ballmer had reportedly wanted to buy a basketball team since 2008 when he was part of a consortium that attempted (but failed) to acquire the Seattle Sonics.
He also attempted to purchase the Sacramento Kings in 2012. However, Ballmer would eventually get his chance in 2014, when Clippers owner Donald Sterling was given a lifetime suspension from the NBA for racial comments.
Sterling’s wife lobbied for the sale of the Los Angeles Clippers, and Ballmer came in with a $2 billion bid. Soon later, the bid was approved, and Ballmer became the Clippers’ new owner.
Steve Ballmer’s net worth is mainly derived from his 333.3 million Microsoft stock shares. He has sold $3.4 billion in stock and received nearly $4.5 billion in dividends. In 1980, Bill Gates hired him as Microsoft’s Business Manager.
He proposed a compensation package with a $50,000 annual salary and 8% company ownership. The corporation was founded a year later, in 1981, and Ballmer’s shares skyrocketed in value. As a result, Steve Ballmer became only the second person in history to become a billionaire by using stock options for a company he did not create.
Ballmer earned a total salary of nearly $1.275 million while CEO of Microsoft. This includes a basic salary of approximately $666,000, a cash bonus of approximately $600,000, and other pay of approximately $11,000.
According to rumors, Ballmer paid $9.8 million for a home in Hunts Point, Washington, in 2020. The historic mansion, built in 1902, has 3,790 square feet of living space and almost one acre of land. This was not Steve Ballmer’s first real estate purchase in Seattle.
In 1987, he and his wife, Connie, paid $1.325 million for another home nearby. Since then, the property’s value has risen, with a stated value of more than $12 million in 2020.
Ballmer also paid $400 million for the Forum in Inglewood in 2020. The Forum was once home to the Los Angeles Lakers, who ultimately relocated to the Staples Center. The Clippers are now playing at the Staples Center. Still, they can return to their home court whenever Ballmer redevelops the Forum.
Ballmer’s purchase was significant, as another NBA franchise owner, James Dolan, had been stopping Ballmer from constructing a new arena nearby. MSG, Dolan’s firm, bought the Forum in 2012 for $23.5 million.
After successfully purchasing Dolan’s stake in the Forum, Ballmer paved the way for a completely new, 18,000-seat stadium with all the latest amenities. This new stadium is expected to cost more than $1 billion to build and is planned to open in 2024.
Pros and Cons of Steve Ballmer Net Worth
- Steve Ballmer has an enormous net worth, estimated to be in the $40 billion range.
- His fortune has enabled him to make charitable contributions and investments in Microsoft, one of the world’s top technological businesses.
- Ballmer has put his money into other businesses, including the Los Angeles Clippers basketball and the Seattle Seahawks football teams.
- He is a successful business leader with significant achievements and has been a role model for many aspiring entrepreneurs.
- Steve Ballmer’s riches can create a financial separation between him and those less wealthy, resulting in inequality and social imbalance.
- His wealth can cause him to be greedy, causing him to want to obtain more money than is necessary or to participate in unethical business methods.
- His substantial financial means may build a barrier between himself and his employees or colleagues, making it difficult for them to speak freely and on an equal footing with him.
Final Thought – Steve Ballmer Net Worth
Steve Ballmer’s net worth is a monument to his professional achievement and financial ability. His ability to develop a business that has brought him great money demonstrates his dedication, persistence, and vision.