Steve Ballmer is set to make $1 billion a year for doing nothing

Microsoft is poised to grant former CEO Steve Ballmer approximately $1 billion in annual dividend payments.

Currently ranking as the sixth wealthiest individual globally, Ballmer holds the largest share among individual investors in Microsoft, possessing 333.2 million shares, equivalent to about 4% of the company, as per his last ownership disclosure in 2014.

With a stake now valued at around $130 billion, Ballmer’s wealth surged by $44 billion this year, driven by a substantial 56% surge in Microsoft’s stock price.

Ballmer, who accumulated his stake during his 34-year tenure at Microsoft, joined the company in 1980 as its 30th employee.

Rising to the position of CEO in 2000 during the dot-com bubble’s peak, he stepped down in 2014, passing the reins to current CEO Satya Nadella.

In 2023, Microsoft disbursed $2.79 in dividends per share, translating to an annual dividend payment of approximately $930 million for Ballmer based on his stake.

The dividend is slated to rise in 2024, with Microsoft recently increasing it by 10% to $3 per share annually. This adjustment would result in a projected annual dividend payment of $999.6 million to Ballmer in 2024.

Given Microsoft’s consistent trend of raising its dividend for 18 consecutive years, it’s likely that Ballmer’s annual dividend payout will surpass $1 billion in 2024 and continue its upward trajectory in the subsequent years.