Steve Ballmer

Steve Ballmer
Born	Steven Anthony Ballmer (1956-03-24) March 24, 1956 Detroit, Michigan, U.S.
Occupation(s)	Entrepreneur, investor, former CEO of Microsoft
Years active	1980–present
Known for	CEO of Microsoft (2000–2014), owner of Los Angeles Clippers, co-founder of Ballmer Group

Steven Anthony Ballmer (; born March 24, 1956) is an American entrepreneur and investor, widely recognized for serving as the CEO of Microsoft from 2000 until 2014. He is the proprietor of the Los Angeles Clippers in the National Basketball Association (NBA) and co-established the philanthropic investment organization known as Ballmer Group.

As of May 2025, Ballmer’s net worth was estimated at roughly $151 billion by the Bloomberg Billionaires Index, ranking him eighth worldwide. Meanwhile, Forbes ranked him ninth with an estimated wealth of $118 billion.

After being recruited by Bill Gates in 1980, Ballmer left his MBA program at Stanford University to join Microsoft. He was named president in 1998 and took over as CEO from Gates in January 2000. Ballmer stepped down as CEO in February 2014, with Satya Nadella succeeding him, and he departed from Microsoft’s board later that year. Throughout his 14 years at the helm, Microsoft’s revenue tripled and profits doubled, although the company lost its market leadership and failed to capitalize on pivotal technological shifts such as the smartphone revolution driven by the iPhone and Android platforms.

Since acquiring the Clippers, Ballmer has overseen a substantial turnaround compared to the previous ownership under Donald Sterling, investing heavily in key players and supporting the development of the new Intuit Dome arena.

Early life and education

Steven Anthony Ballmer was born in Detroit, Michigan, on March 24, 1956, to Beatrice Dworkin and Frederic Henry (Fritz Hans) Ballmer, who worked as a manager at the Ford Motor Company. His father (1923–2000) hailed from Zuchwil, Switzerland, and immigrated to America in 1948. Ballmer’s mother is Jewish, making him a second cousin of actress and comedian Gilda Radner. Raised in Farmington Hills, Michigan, he also spent several years living in Brussels between 1964 and 1967, where he attended the International School of Brussels.

In 1973, Ballmer enrolled in college preparatory and engineering courses at Lawrence Technological University. He graduated as valedictorian from Detroit Country Day School, a private college preparatory institution located in Beverly Hills, Michigan. His SAT math score was an impressive 790, and he earned recognition as a National Merit Scholar.

Ballmer was the first member of his family to complete a college degree. He matriculated at Harvard University, where he managed the Harvard Crimson football team, was affiliated with the Fox Club, contributed to both The Harvard Crimson and Harvard Advocate, and lived near his sophomore classmate Bill Gates. Notably, Ballmer outperformed Gates on the William Lowell Putnam Mathematical Competition. He graduated magna cum laude in 1977 with a Bachelor of Arts degree in applied mathematics and economics.

Following Harvard, Ballmer spent two years at Procter & Gamble as an assistant product manager, sharing office space with Jeff Immelt, who would later become CEO of General Electric. He briefly explored screenwriting in Hollywood before enrolling at the Stanford Graduate School of Business for his MBA studies. Among his classmates was Mukesh Ambani. However, Ballmer left Stanford in 1980 to join Microsoft upon Bill Gates’ invitation.

History with Microsoft

Ballmer became part of Microsoft on June 11, 1980, as the company's 30th hire and its first business executive brought in by Bill Gates. Initially, his compensation included a $50,000 salary plus 10% of the profits he generated, but he did not receive any equity. As Microsoft grew, Ballmer's share of profits increased substantially. When Microsoft restructured as a corporation in 1981, Ballmer traded his profit share for an 8% equity stake, primarily financed by Gates. By 2003, he sold 39.3 million shares for roughly $955 million, reducing his ownership to 4%, and he also replaced Microsoft's employee stock option program.

Throughout his first twenty years at Microsoft, Ballmer oversaw major divisions such as operations, operating systems development, and sales and support. In 1992, he was appointed Executive Vice President for Sales and Support and contributed significantly to the creation of the .NET Framework. By July 1998, Ballmer advanced to President, effectively becoming Microsoft's second-in-command after CEO Bill Gates.

Chief executive officer (2000–2014)

On January 13, 2000, Ballmer was appointed CEO and relinquished the president title by February 2001. While Ballmer handled financial management and daily operations, Bill Gates retained his roles as chairman and chief software architect until stepping back from daily responsibilities in 2006. This transition granted Ballmer increased freedom to implement managerial changes.

At the outset of Ballmer’s tenure, Microsoft was embroiled in a significant antitrust lawsuit in the United States alongside complaints from competitors. Unlike Gates, who might have extended legal battles, Ballmer preferred negotiating settlements to protect Microsoft's reputation. He enforced more rigorous business justifications for product approvals and hired B. Kevin Turner from Walmart as COO in 2005 to instill greater discipline within sales and operational functions.

Following Gates' retirement from daily duties, Ballmer redirected Microsoft away from its traditional PC-centric approach by replacing division leaders and promoting a "connected computing" vision that included acquisitions such as Skype. Despite share prices stagnating during this period, annual revenues climbed from $25 billion to $70 billion under Ballmer’s leadership, with net income increasing by 215% to $23 billion. Microsoft’s gross profit margins notably exceeded those of competitors like Google and IBM. His leadership resulted in total profit growth of 16.4%, outperforming peers such as Jack Welch and Louis Gerstner. These financial successes were primarily driven by the Windows and Office franchises while countering threats from Linux and Google Docs. Additionally, Ballmer expanded new business areas including data centers and the Xbox division (valued at $8.9 billion), while growing Microsoft's $20 billion Enterprise Business through products like Exchange, SQL Server, SharePoint, System Center, and Dynamics CRM—all of which achieved market leadership. This diversification lessened dependency on PCs during the post-PC era; by April 2013, even though Windows Phone and Windows 8 struggled with market penetration, Microsoft’s Business Division along with its Server & Tools segment had grown larger than Windows.

Ballmer encountered criticism for failing to capitalize on emerging markets such as tablets, smartphones, and digital music players—efforts that often left Microsoft trailing competitors with inconsistent outcomes. The Wall Street Journal highlighted that although Microsoft frequently pioneered new technologies under his leadership, it sometimes abandoned projects that posed risks to Windows and Office revenue streams. In 2013, the BBC named him among the worst CEOs of the year, while hedge fund manager David Einhorn publicly urged his resignation in 2012. Forbes also reproached him for missing out on rapidly expanding sectors like mobile music and tablets.

In 2009, Ballmer delivered the keynote address at CES—the first since Gates stepped away from day-to-day management.

Expanding Microsoft’s hardware initiatives further, Ballmer introduced the company’s inaugural tablet device, Surface, in June 2012. This was followed by acquiring Nokia's mobile phone division in September 2013—his last significant acquisition as CEO.

On August 23, 2013, Microsoft announced that Ballmer would retire within a year; a selection committee including Gates was tasked with choosing his successor.

Most potential successors had already departed Microsoft: Jim Allchin, Brad Silverberg, Paul Maritz, Nathan Myhrvold, Greg Maffei, Pete Higgins, Jeff Raikes, J. Allard, Robbie Bach, Bill Veghte, Ray Ozzie, Bob Muglia, and Steven Sinofsky. COO B. Kevin Turner was regarded as a strong operational leader but lacked a technological vision. On February 4, 2014, Satya Nadella took over as CEO following Ballmer’s departure.

Public image

Although Ballmer was reserved during his childhood, he later gained recognition for his dynamic and spirited demeanor, which he leveraged to inspire both employees and business partners. His loud vocal style even necessitated surgery on his vocal cords. His lively and animated presentations at Microsoft events became popular viral content online. Notable early instances include a 1986 comedic promotion for Windows 1.0 and a humorous sketch featuring Brian Valentine for Windows XP.

One of the most iconic highlights of his public persona occurred at Microsoft's 25th anniversary celebration in 2000, where he energetically leapt onto the stage exclaiming, "I love this company!" Another memorable clip shows him at a Windows 2000 developers' conference, repeatedly chanting "developers" while visibly sweating. These moments underscored his fervent leadership approach and dedication to the developer community within Microsoft.

Relationship with Bill Gates

Ballmer served as Bill Gates' best man at his wedding to Melinda French, with both men likening their bond to a marital partnership. Their close collaboration was characterized by vigorous debates typical of Microsoft's internal culture, often misunderstood as personal disputes. When Ballmer assumed the CEO role in 2000, Gates welcomed the shift to concentrate more on technology, though friction emerged during the power transition. On one occasion, Gates abruptly left a meeting after Ballmer defended fellow executives; following this, Ballmer appeared contrite. Ballmer later remarked, "Once Gates leaves, I'm not going to need him for anything. That's the principle. Use him, yes, need him, no."

By October 2014, several months after Ballmer had left Microsoft, a Vanity Fair article revealed that Ballmer and Gates had ceased communication due to lingering resentment related to Ballmer’s resignation. In a 2016 interview, Ballmer admitted they had "drifted apart" from their previously close "brotherly relationship," partly blaming his push into hardware and smartphones—areas Gates was not supportive of—for the estrangement.

Retirement

Initially declaring in 2008 that he planned to remain CEO for another ten years, Ballmer ultimately announced his retirement in 2013 following notable setbacks with acquisitions and the Surface tablet launch. The announcement triggered a rebound in Microsoft’s stock price.

Ballmer later expressed remorse for neglecting Windows Mobile in the early 2000s, which resulted in Microsoft falling to third place in the smartphone market by 2013. He attributed part of Apple's iPhone success to carrier subsidies, emphasizing Apple’s innovative approach of incorporating device costs into monthly phone bills. He described acquiring Nokia’s mobile division as the most challenging decision of his leadership period.

His final company meeting took place in September 2013, and he formally resigned from Microsoft’s board in August 2014.

In December 2014, the Seattle Times reported that the IRS filed suit against Ballmer and other former Microsoft executives to compel their testimony in a corporate tax investigation centered on transfer pricing.

By December 2023, CNN estimated that Ballmer would receive approximately $1 billion annually in dividends from his Microsoft shares following an increase in the company’s dividend payout to $3 per share.

Other roles

Between 2001 and 2006, Ballmer held a position on the board of Accenture and acted as a general partner at Accenture SCA. Specific information regarding his compensation during this period has not been publicly revealed.

Apple

In 2007, Ballmer dismissed the potential success of the iPhone, asserting it had "no chance" to capture a meaningful market share. By 2009, he criticized Apple's strategy of charging a premium price, arguing that paying an additional $500 for brand recognition was harder to justify amid economic downturns.

On September 25, 2014, Ballmer declared that the L.A. Clippers would be prohibited from using Apple products such as iPads, favoring Microsoft hardware instead. It was also reported that he restricted his own family from using iPhones.

Although Apple became the world’s most valuable company by 2015, Ballmer described Microsoft's 1997 financial support to prevent Apple's bankruptcy as "the craziest thing we ever did."

In 2016, Ballmer revisited his earlier doubts about the iPhone, clarifying that his concern centered on the $600–$700 price range, unaware that wireless carriers would subsidize these costs through monthly plans.

Free and open source software

In July 2000, Ballmer controversially equated the free software Linux kernel with "communism" and accused it of infringing upon Microsoft’s intellectual property rights. By June 2001, he characterized Linux as a "cancer" that spreads through everything it touches in terms of intellectual property. He voiced apprehension about the GNU General Public License (GPL), describing its requirement for derivative works to adopt similar licensing as "viral." In April 2003, Ballmer personally approached Munich’s mayor to dissuade the city from migrating to Linux, even proposing a 35% discount on Microsoft products; nevertheless, Munich proceeded with implementing LiMux.

By March 2016, Ballmer had revised his stance and expressed support for his successor Satya Nadella's open source initiatives. He acknowledged that while his earlier critiques were applicable at the time, the industry environment had undergone significant transformation.

Google

In 2005, Microsoft initiated legal action against Google for recruiting former vice president Kai-Fu Lee, alleging breach of a one-year non-compete clause. Mark Lucovsky, who departed Microsoft for Google in 2004, recounted that then-CEO Steve Ballmer reacted furiously upon learning of Lucovsky's exit, reportedly throwing a chair and vowing to "kill Google," targeting then-Google Executive Chairman Eric Schmidt. Ballmer later dismissed this narrative as a "gross exaggeration."

At the 2011 Web 2.0 Summit, Ballmer criticized Android devices, stating they demanded greater technical knowledge compared to Windows Phones. In 2013, he labeled Google a "monopoly" and called on regulators to exert market pressure.

Sports

On March 6, 2008, Seattle mayor Greg Nickels announced that a local ownership consortium including Ballmer pledged $150 million toward a $300 million renovation of KeyArena, with intentions to acquire the Seattle SuperSonics and keep them in Seattle. This initiative ultimately failed, and the SuperSonics relocated to Oklahoma City, becoming the Oklahoma City Thunder.

In June 2012, Ballmer invested in Chris R. Hansen's effort to construct a new arena in Seattle’s SoDo district and revive the SuperSonics franchise. On January 9, 2013, Ballmer and Hansen spearheaded an investor group attempting to purchase the Sacramento Kings for approximately $650 million with plans to move them to Seattle; however, this bid was unsuccessful.

Following the Donald Sterling controversy in May 2014, Ballmer submitted the highest offer—around $2 billion—to acquire the Los Angeles Clippers, marking one of the largest transactions for a North American sports team at that time. After a court confirmed Shelly Sterling's authority to sell the franchise, Ballmer officially became Clippers owner on August 12, 2014.

In March 2020, Ballmer agreed to purchase The Forum in Inglewood for $400 million. This acquisition facilitated plans to build the new Intuit Dome arena nearby following opposition from previous Forum owners.

A December 2020 poll by The Athletic recognized Ballmer as basketball’s top owner.

Wealth and taxation

In 2021, an investigation by ProPublica exposed how Ballmer leverages sports team ownership to lower his federal income tax rate to as little as 12%, significantly below the approximate 35% rate paid by the athletes themselves. The findings revealed that although the Clippers were profitable prior to Ballmer's purchase, they subsequently reported $700 million in losses for tax reporting purposes.

Further reporting in 2023 by ProPublica uncovered Ballmer's employment of wash sale strategies, supported by Goldman Sachs, described as "Tax Advantaged Loss Harvesting." This approach has yielded tax savings exceeding $500 million over a five-year span.

As of March 5, 2025, the Bloomberg Billionaires Index valued Ballmer's net worth at around $136 billion, positioning him tenth worldwide. Meanwhile, the Forbes *Real-Time Billionaires List* ranked him twelfth with an estimated net worth of $117.8 billion.

Philanthropic efforts

On November 12, 2014, Ballmer and his wife Connie contributed $50 million to the University of Oregon, targeting scholarships, public health research initiatives, and brand development. Connie Ballmer is both an alumna and a former trustee of the institution.

The following day, Ballmer committed $60 million to Harvard University's computer science department to support faculty recruitment and elevate the program's national prominence. This followed an earlier joint donation of $10 million made with Bill Gates in 1994.

In 2022, Ballmer donated $425 million to launch the Ballmer Institute for Children's Behavioral Health at the University of Oregon.

Ballmer also participates in the World Chairman's Council of the Jewish National Fund, reflecting contributions surpassing $1 million.

Ballmer Group

Established in 2015 by Steve Ballmer and his wife, the Ballmer Group is a philanthropic investment organization dedicated to enhancing economic mobility for children from low-income backgrounds. Its operations focus on regions including Washington state, Los Angeles County, and the metropolitan Detroit area.

USAFacts

Founded by Ballmer in 2017, USAFacts is a nonprofit organization committed to improving transparency regarding U.S. government revenue, expenditures, and societal outcomes. Ballmer provided $10 million to support research teams that aggregated official government data for this platform.

Personal background

Ballmer wed Connie Snyder in 1990; together they have three sons. The family primarily lives in Hunts Point, Washington, and owns several properties throughout the Seattle region as well as near Coupeville, Washington.