Former Microsoft CEO To Earn $1 Billion A Year For Not Doing Anything
Former Microsoft CEO Steve Ballmer, currently ranked as the sixth richest person globally, is set to receive an astounding $1 billion in annual dividend payments from the tech giant.?
The tech entrepreneur and investor served as the CEO of Microsoft between 2000 and 2014. He stepped down from the top post making way for current CEO Satya Nadella.
Owns approximately 4% of the company
Ballmer, who joined as the 30th employee in 1980, amassed a substantial stake.?Ballmer, the largest individual shareholder in Microsoft, owns approximately 4% of the company, equivalent to 333.2 million shares, reported CNN.?
The news comes as?the tech giant boosted its quarterly dividend by 75 cents a share, or $3 a share annually. Also, his?significant stake surged in value to around $130 billion, marking a $44 billion increase in wealth this year alone, driven by a remarkable 56% rise in Microsoft's stock price. Steve Ballmer's passive income stands out as a substantial addition to his wealth.
Closer to becoming 4th richest person in the world
Because of the stake ownership, Steve Ballmer is close to becoming the fourth richest person globally, just a few billion dollars shy of Larry Ellison and his former boss, Bill Gates.
In 2023, Microsoft paid $2.79 per share in dividends, resulting in an annual payment of around $930 million to Ballmer based on his ownership.For 2024, Microsoft raised its dividend by 10% to $3 per share, projecting a potential $999.6 million annual dividend for Ballmer.
Notably, the company started paying dividends to shareholders in 2003. Since then, the amount has only increased, thereby making it clear that Ballmer won¡¯t be the only one raking it in.
As per his income levels, Ballmer will be paying 20% tax on the dividend earnings due to be received in FY23. The total tax on dividend amounts to $200 million.?
Besides Steve Ballmer, there are a few other individuals who will be earning a significant amout for owning Microsoft stocks. Warren Buffet¡¯s Berkshire Hathaway will be receiving $6 billion in dividends for the year as he owns the majority of stocks in the companies that pay dividends.
These companies are Chevron, Bank of America, Apple, Coca-Cola, Kraft Heinz and American Express.
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