Former Microsoft Chief Executive Officer (CEO) Steve Ballmer is set to get approximately $1 billion (Rs 8300 crore) in dividends despite doing nothing for his former firm, a CNN report said.
A key factor behind Ballmer, who is the sixth richest person in the world, earning such a large sum despite not contributing anything to Microsoft's growth is the company's decision to raise its quarterly dividend payout to 75 cents per share, which amounts of $3 per share, yearly.
Hence, in 2024, Ballmer will get approximately $1 billion only for his ownership, regardless of stock performance.
Ballmer, who joined the company in 1980 and was the 30th ever employee of the software giant, held 333.2 million (Rs 33.32 crore) shares of Microsoft, as of 2014.
The 67 -year-old played an important role in Microsoft's early growth and success, especially in the development of the MS-DOS operating system. Ballmer became Microsoft President in 1998 and its CEO in 2000, taking over from Bill Gates.
During his tenure as CEO, he oversaw the launch of several products such as Windows XP, Xbox and Zune. He was succeeded by Satya Nadella in February 2014, but stayed on in the company's Board of Directors until August 2014.
Ballmer is not the only one who is set to gain from stocks that pay dividends, in 2024.
As per Wall Street Journal, Warren Buffet's Berkshire Hathaway is set to collect $6 billion in dividends in the next 12 months since most of the stocks the firm invests in such as Bank of America, Chevron and Coca-Cola pay dividends.
Also read: 'Ex-Microsoft intern' Radhika Gupta on learning leadership from Satya Nadella: 'Thank you'
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