Steve Ballmer: Once Bill Gates’ Assistant, Now Richer Than Bill Gates

Steve Ballmer's journey from a modest beginning at Microsoft to becoming one of the wealthiest individuals in the world is a remarkable tale of ambition, opportunity, and success. 

Once serving as Bill Gates' assistant, Ballmer has now surpassed his onetime mentor in wealth, highlighting an extraordinary career trajectory that few could have predicted.

When Steve Ballmer joined Microsoft in 1980 as the company’s 30th employee, he didn’t receive a single company share. 

Instead, he was brought on with the unimpressive title of “business manager,” essentially serving as a quasi–personal assistant to Bill Gates. 

Ballmer had dropped out of Stanford Business School for this opportunity, demonstrating his belief in the fledgling company’s potential.

Despite starting with no shares, Ballmer’s fortunes changed rapidly due to a unique compensation deal. 

Recognizing the need for rapid growth, Gates and cofounder Paul Allen agreed to give Ballmer 10% of the profit growth he generated, on top of his $50,000 annual salary. 

This deal soon proved financially unsustainable for Microsoft as the company’s profits soared, leading to a new agreement where Ballmer received an 8% stake in the company in exchange for giving up his profit-sharing deal.

This stake was critical to Ballmer’s future wealth. 

Gates and Allen retained 84% of the company, with 8% allocated for other employees. Although Allen initially opposed granting Ballmer such a significant share, Gates intervened, agreeing to fund Ballmer’s 8% from his own holdings. 

This decision laid the foundation for Ballmer’s immense wealth.

In 2014, Ballmer retired from Microsoft, leaving with approximately a 4% stake worth $22.5 billion. 

His belief in Microsoft’s long-term potential led him to retain his shares, a decision that has paid off handsomely. 

The company’s shares have surged, especially in light of the AI boom and Microsoft’s $10 billion investment in OpenAI, boosting Ballmer’s net worth to $157 billion.

This remarkable wealth has placed Ballmer ahead of many well-known tech entrepreneurs, including Google cofounder Sergey Brin, Oracle founder Larry Ellison, and Dell Technologies CEO Michael Dell. 

More notably, it marks the first time Ballmer’s net worth has surpassed that of Bill Gates, making him the sixth richest person in the world.

Bill Gates, meanwhile, has taken a different route, diversifying his portfolio and focusing on philanthropy. 

Through his private investment firm, Cascade Investment, Gates has significant holdings in various sectors, including a $21 billion stake in Republic Services. 

Moreover, Gates and his ex-wife Melinda French Gates have donated $59.5 billion to the Bill & Melinda Gates Foundation, making it one of the world’s largest charitable organizations.

Gates has also committed to the Giving Pledge, promising to give away most of his wealth during his lifetime.

This commitment to philanthropy has played a role in his relative wealth position compared to Ballmer.

Ballmer’s ascent is not just a financial story but also a narrative of evolving relationships. 

Once bound by their work at Microsoft, Ballmer and Gates have drifted apart since Ballmer’s retirement. 

“Microsoft was kind of the thing that really bound us,” Ballmer told Bloomberg Television in 2016. 

“We started off as friends, but then really got quite enmeshed around Microsoft. Since I’ve gone, we really have drifted a little bit.”

Steve Ballmer’s journey from Bill Gates’ assistant to surpassing Gates in wealth is a testament to the unpredictable nature of success and the power of strategic decisions. 

His story underscores the potential for incredible growth within the tech industry and the lasting impact of early business decisions. 

As Ballmer enjoys his status among the world’s wealthiest, his rise serves as an inspiring example of how determination and opportunity can lead to extraordinary outcomes.