Steve Balmer went from Bill Gates’ personal assistant to surpassing him as the world’s 6th richest man

The 68-year-old former Microsoft CEO squeaked by his onetime boss Invoice Gates to turn out to be the sixth richest individual on the planet on Monday with a internet value of $157 billion. He’s now richer than many well-known tech entrepreneurs together with Google cofounder Sergey Brin, Oracle founder Larry Ellison, and Dell’s Michael Dell.

It’s additionally the primary time that Ballmer’s internet value has surpassed that of Gates, and one of many few instances in historical past an worker has come to be richer than an organization’s founder. Ballmer is the one individual with a internet value of $100 billion or extra who made their cash as an worker fairly than a founder, as Fortune beforehand reported.

Ballmer’s internet value was boosted by a rally in Microsoft’s shares, which closed at an all-time-high on Tuesday and have surged 22% since January. Shares of the corporate signify about 90% of his internet value, in line with the Bloomberg Billionaires Index, and Microsoft has been one of many greatest beneficiaries of the AI growth fueling markets, because of its $10 billion funding in OpenAI. 

In 2014, Ballmer left Microsoft with a couple of 4% stake value $22.5 billion, in line with Forbes. On the time, he stated that he was holding onto his shares for the long run, Forbes reported.

“I’d wish to personal Microsoft shares till I both give one thing to charity or I die,” he instructed the outlet.

In the meantime, Gates has diversified his portfolio through the years away from the corporate he based, with half of his holdings now managed by non-public funding agency Cascade Funding. He has a $21 billion stake in waste administration firm Republic Companies by Cascade, Bloomberg reported. 

Making a gift of cash

Gates’ main philanthropic donations additionally think about. As of 2023, Gates and his ex-wife Melinda French Gates had donated $59.5 billion to the Invoice & Melinda Gates Basis, turning it into the one of many world’s largest charitable foundations. In 2010, Gates additionally co-created the Giving Pledge with French Gates and investor Warren Buffett, and has promised to offer away most of his wealth throughout his lifetime.  

Though Steve Ballmer’s holdings have made him one of many richest males on the planet, when he joined as the corporate’s thirtieth worker in 1980, he didn’t get a single share. After dropping out of Stanford’s enterprise faculty, he got here on as a quasi-personal assistant to Invoice Gates with the unimpressive title “enterprise supervisor,” Forbes reported.

But, as a result of Microsoft was seeking to develop quickly on the time, Gates and his cofounder Paul Allen agreed to offer Ballmer 10% of the revenue development he generated on prime of his $50,000 yearly wage.

That deal turned out to be the important thing to Ballmer’s future wealth. Quickly, Microsoft was rising so quick that Ballmer’s 10% lower now not made sense financially for the corporate. When Microsoft reorganized as a company, Ballmer negotiated an 8% slice for himself in change for giving up his profit-sharing deal, whereas Gates and Allen saved 84% and one other 8% was designated for different workers, Forbes reported. Though Allen was against giving Ballmer such a big stake, Gates stepped in and stated Ballmer’s 8% lower could possibly be funded by a drawdown of his personal holdings, in line with Forbes.

Whereas on the time Gates put his personal cash on the road for Ballmer, the 2 have since drifted aside.

“Microsoft was sort of the factor that actually certain us,” Ballmer instructed Bloomberg Tv in 2016. “We began off as buddies, however then actually obtained fairly enmeshed round Microsoft. Since I’ve gone, we actually have drifted slightly bit.”