Former Microsoft CEO Steve Ballmer Set to Earn $1 Billion Annually in Passive Income

Former Microsoft CEO Steve Ballmer Set to Earn $1 Billion Annually in Passive Income.

Former Microsoft CEO Steve Ballmer, currently ranked as the sixth richest person globally, is poised to receive an astonishing $1 billion in annual dividend payments from the tech giant.

As the largest individual shareholder with approximately 4% ownership, equivalent to 333.2 million shares, Ballmer’s significant stake has witnessed an impressive surge in value to around $130 billion.

This notable increase of $44 billion in wealth during the current year is attributed to Microsoft’s stock price rising by an outstanding 56%.

Having joined Microsoft as its 30th employee in 1980 and later serving as CEO from 2000 to 2014, Ballmer’s passive income from dividends adds substantially to his wealth. The annual dividend payment for 2023, set at $2.79 per share, resulted in an approximate $930 million payout to Ballmer. Microsoft’s recent announcement of a 10% dividend increase to $3 per share for 2024 projects a potential annual dividend of around $999.6 million for Ballmer.

Close to becoming the fourth richest person globally, Ballmer’s wealth is nearing that of Larry Ellison and his former boss, Bill Gates. With Microsoft consistently raising its dividend for 18 consecutive years, it is anticipated that Ballmer’s annual payout could surpass $1 billion in 2024 and continue to grow.

However, it’s noteworthy that Ballmer may be subject to the 20% tax on dividends for individuals earning over $500,000 annually, potentially resulting in around $200 million in taxes on the dividends received from Microsoft.

Meanwhile, Bill Gates, who significantly diversified his wealth away from Microsoft after stepping down, now holds just over 1% ownership in the company, having divested a considerable portion of his stake since 2014.