Steve Ballmer
On May 29, 2014, Ballmer placed a bid of $2 billion to purchase the Los Angeles Clippers of the National Basketball Association (NBA). He officially became the Clippers owner on August 12, 2014.
Ballmer was born in Detroit, the son of Beatrice Dworkin and Frederic Henry Ballmer, a manager at the Ford Motor Company. His father was a Swiss immigrant, and his mother was Jewish (her family was from Belarus). Ballmer grew up in the affluent community of Farmington Hills, Michigan. In 1973, he attended college prep and engineering classes at Lawrence Technological University. He graduated from Detroit Country Day School, a private college preparatory school in Beverly Hills, Michigan, with a perfect score of 800 on the mathematical section of the SAT and was a National Merit Scholar. He now sits on the school's board of directors. In 1977, he graduated magna cum laude from Harvard College with an A.B. in applied mathematics and economics.
At college, Ballmer was a manager for the football team, worked on The Harvard Crimson newspaper as well as the Harvard Advocate, and lived down the hall from fellow sophomore Bill Gates. He scored highly in the prestigious William Lowell Putnam Mathematical Competition, an exam sponsored by the Mathematical Association of America, scoring higher than Bill Gates. He then worked for two years as an assistant product manager at Procter & Gamble, where he shared an office with Jeffrey R. Immelt, who later became CEO of General Electric. In 1980, he dropped out of the Stanford Graduate School of Business to join Microsoft.
At college, Ballmer was a manager for the football team, worked on The Harvard Crimson newspaper as well as the Harvard Advocate, and lived down the hall from fellow sophomore Bill Gates. He scored highly in the prestigious William Lowell Putnam Mathematical Competition, an exam sponsored by the Mathematical Association of America, scoring higher than Bill Gates. He then worked for two years as an assistant product manager at Procter & Gamble, where he shared an office with Jeffrey R. Immelt, who later became CEO of General Electric. In 1980, he dropped out of the Stanford Graduate School of Business to join Microsoft.
Steve Ballmer joined Microsoft on June 11, 1980, and became Microsoft's 30th employee, the first business manager hired by Gates.
Ballmer was initially offered a salary of $50,000 as well as a percentage of ownership of the company. When Microsoft was incorporated in 1981, Ballmer owned 8 percent of the company. In 2003, Ballmer sold 8.3% of his shareholdings, leaving him with a 4% stake in the company. The same year, Ballmer replaced Microsoft employee stock options program.
In the 20 years following his hire, Ballmer headed several Microsoft divisions, including operations, operating systems development, and sales and support. From February 1992 onwards, he was Executive Vice President, Sales and Support. Ballmer led Microsoft's development of the .NET Framework. Ballmer was then promoted to President of Microsoft, a title that he held from July 1998 to February 2001, making him the de facto number two in the company to the Chairman and CEO, Bill Gates.
Ballmer was initially offered a salary of $50,000 as well as a percentage of ownership of the company. When Microsoft was incorporated in 1981, Ballmer owned 8 percent of the company. In 2003, Ballmer sold 8.3% of his shareholdings, leaving him with a 4% stake in the company. The same year, Ballmer replaced Microsoft employee stock options program.
In the 20 years following his hire, Ballmer headed several Microsoft divisions, including operations, operating systems development, and sales and support. From February 1992 onwards, he was Executive Vice President, Sales and Support. Ballmer led Microsoft's development of the .NET Framework. Ballmer was then promoted to President of Microsoft, a title that he held from July 1998 to February 2001, making him the de facto number two in the company to the Chairman and CEO, Bill Gates.
In January 2000, Ballmer was officially named Chief Executive Officer. As CEO, Ballmer handled company finances and daily operations, but Gates remained chairman of the board and still retained control of the technological vision as chief software architect. Gates relinquished day to day activities when he stepped down as chief software architect in 2006, while staying on as chairman, and that gave Ballmer the autonomy needed to make major management changes at Microsoft.
When Ballmer took over as CEO, the company was fighting an antitrust lawsuit brought on by the U.S. government and 20 states, plus class action lawsuits and complaints from rival companies. While it was said that Gates would have continued fighting the suit, Ballmer made it his priority to settle these saying Being the object of a lawsuit, effectively, or a complaint from your government is a very awkward, uncomfortable position to be in. It just has all downside. People assume if the government brought a complaint that there really a problem, and your ability to say we are a good, proper, moral place is tough. It actually tough, even though you feel that way about yourselves.
Upon becoming CEO, Ballmer required detailed business justification in order to approve of new products, rather than allowing hundreds of products that sounded potentially interesting or trendy. In 2005, he recruited B. Kevin Turner from Wal Mart Stores, where he was executive vice president, to become Microsoft chief operating officer to add scorecards for measuring customer satisfaction and other key sales metrics.
Since Bill Gates retirement, Ballmer oversaw a dramatic shift away from the company PC first heritage, replacing most major division heads in order to break down the talent hoarding fiefdoms, and Businessweek said that the company arguably now has the best product lineup in its history. Ballmer was instrumental in driving Microsoft cloud computing strategy, with acquisitions such as Skype.
Under Ballmer tenure as CEO, Microsoft annual revenue surged from $25 billion to $70 billion, while its net income increased 215 percent to $23 billion, and its gross profit of 75 cents on every dollar in sales is double that of Google or International Business Machines Corp. In terms of leading the company total annual profit growth, Ballmer tenure at Microsoft (16.4 percent) surpassed the performances of other well-known CEOs such as General Electric Jack Welch (11.2 percent) and IBM Louis V. Gerstner, Jr. (2 percent). These gains came from the existing Windows and Office franchises, with Ballmer maintaining their profitability, fending off threats from cheaper competitors such as GNU/Linux and other open-source operating systems and Google Docs. Ballmer also built half-a-dozen new businesses such as the data centers division ($6.6 billion in profit for 2011)[citation needed] and the Xbox entertainment and devices division ($8.9 billion) (which has prevented the Sony PlayStation and other gaming consoles from undermining Windows), and oversaw the acquisition of Skype. Ballmer also constructed the company $20 billion Enterprise Business, consisting of new products and services such as Exchange, Windows Server, SQL Server, SharePoint, System Center, and Dynamics CRM, each of which initially faced an uphill battle for acceptance but have emerged as leading or dominant in each category. This diversified product mix helped to offset the company reliance on PCs and mobile computing devices as the company entered the Post PC era; in reporting quarterly results during April 2013, while Windows Phone 8 and Windows 8 had not managed to increase their market share above single digits, the company increased its profit 19 percent over the previous quarter in 2012, as the Microsoft Business Division (including Office 365) and Server and Tools division (cloud services) are each larger than the Windows division.
Ballmer attracted criticism for failing to capitalize on several new consumer technologies, forcing Microsoft to play catch-up in the areas of tablet computing, smartphones and music players with mixed results. Under Ballmer watch, In many cases, Microsoft latched onto technologies like smartphones, touchscreens, smart cars and wristwatches that read sports scores aloud long before Apple or Google did. But it repeatedly killed promising projects if they threatened its cash cows Windows and Office. Microsoft share price stagnated during Ballmer's tenure. As a result, in May 2012, hedge fund manager David Einhorn called on Ballmer to step down as CEO of Microsoft. His continued presence is the biggest overhang on Microsoft stock, Einhorn said in reference to Ballmer. In a May 2012 column in Forbes magazine, Adam Hartung described Ballmer as the worst CEO of a large publicly traded American company, saying he had steered Microsoft out of some of the fastest growing and most lucrative tech markets (mobile music, handsets and tablets).
In 2009, and for the first time since Bill Gates resigned from day to day management at Microsoft, Ballmer delivered the opening keynote at CES.
On June 19, 2012, Ballmer revealed Microsoft new tablet device called Microsoft Surface at an event held in Hollywood, Los Angeles.
On August 23, 2013, Microsoft announced that Ballmer would retire within the next 12 months. A special committee that included Bill Gates would decide on the next CEO.
There was a list of potential successors to Ballmer as Microsoft CEO, but all had departed the company: 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. B. Kevin Turner, Microsoft Chief Operating Officer (COO), was considered by some to be a de facto number two to Ballmer, with Turner having a strong grasp of business and operations but lacking technological vision. On February 4, 2014, Satya Nadella succeeded Ballmer as CEO.
Ballmer has also served as director of Accenture Ltd. and a general partner of Accenture SCA since October 2001.
When Ballmer took over as CEO, the company was fighting an antitrust lawsuit brought on by the U.S. government and 20 states, plus class action lawsuits and complaints from rival companies. While it was said that Gates would have continued fighting the suit, Ballmer made it his priority to settle these saying Being the object of a lawsuit, effectively, or a complaint from your government is a very awkward, uncomfortable position to be in. It just has all downside. People assume if the government brought a complaint that there really a problem, and your ability to say we are a good, proper, moral place is tough. It actually tough, even though you feel that way about yourselves.
Upon becoming CEO, Ballmer required detailed business justification in order to approve of new products, rather than allowing hundreds of products that sounded potentially interesting or trendy. In 2005, he recruited B. Kevin Turner from Wal Mart Stores, where he was executive vice president, to become Microsoft chief operating officer to add scorecards for measuring customer satisfaction and other key sales metrics.
Since Bill Gates retirement, Ballmer oversaw a dramatic shift away from the company PC first heritage, replacing most major division heads in order to break down the talent hoarding fiefdoms, and Businessweek said that the company arguably now has the best product lineup in its history. Ballmer was instrumental in driving Microsoft cloud computing strategy, with acquisitions such as Skype.
Under Ballmer tenure as CEO, Microsoft annual revenue surged from $25 billion to $70 billion, while its net income increased 215 percent to $23 billion, and its gross profit of 75 cents on every dollar in sales is double that of Google or International Business Machines Corp. In terms of leading the company total annual profit growth, Ballmer tenure at Microsoft (16.4 percent) surpassed the performances of other well-known CEOs such as General Electric Jack Welch (11.2 percent) and IBM Louis V. Gerstner, Jr. (2 percent). These gains came from the existing Windows and Office franchises, with Ballmer maintaining their profitability, fending off threats from cheaper competitors such as GNU/Linux and other open-source operating systems and Google Docs. Ballmer also built half-a-dozen new businesses such as the data centers division ($6.6 billion in profit for 2011)[citation needed] and the Xbox entertainment and devices division ($8.9 billion) (which has prevented the Sony PlayStation and other gaming consoles from undermining Windows), and oversaw the acquisition of Skype. Ballmer also constructed the company $20 billion Enterprise Business, consisting of new products and services such as Exchange, Windows Server, SQL Server, SharePoint, System Center, and Dynamics CRM, each of which initially faced an uphill battle for acceptance but have emerged as leading or dominant in each category. This diversified product mix helped to offset the company reliance on PCs and mobile computing devices as the company entered the Post PC era; in reporting quarterly results during April 2013, while Windows Phone 8 and Windows 8 had not managed to increase their market share above single digits, the company increased its profit 19 percent over the previous quarter in 2012, as the Microsoft Business Division (including Office 365) and Server and Tools division (cloud services) are each larger than the Windows division.
Ballmer attracted criticism for failing to capitalize on several new consumer technologies, forcing Microsoft to play catch-up in the areas of tablet computing, smartphones and music players with mixed results. Under Ballmer watch, In many cases, Microsoft latched onto technologies like smartphones, touchscreens, smart cars and wristwatches that read sports scores aloud long before Apple or Google did. But it repeatedly killed promising projects if they threatened its cash cows Windows and Office. Microsoft share price stagnated during Ballmer's tenure. As a result, in May 2012, hedge fund manager David Einhorn called on Ballmer to step down as CEO of Microsoft. His continued presence is the biggest overhang on Microsoft stock, Einhorn said in reference to Ballmer. In a May 2012 column in Forbes magazine, Adam Hartung described Ballmer as the worst CEO of a large publicly traded American company, saying he had steered Microsoft out of some of the fastest growing and most lucrative tech markets (mobile music, handsets and tablets).
In 2009, and for the first time since Bill Gates resigned from day to day management at Microsoft, Ballmer delivered the opening keynote at CES.
On June 19, 2012, Ballmer revealed Microsoft new tablet device called Microsoft Surface at an event held in Hollywood, Los Angeles.
On August 23, 2013, Microsoft announced that Ballmer would retire within the next 12 months. A special committee that included Bill Gates would decide on the next CEO.
There was a list of potential successors to Ballmer as Microsoft CEO, but all had departed the company: 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. B. Kevin Turner, Microsoft Chief Operating Officer (COO), was considered by some to be a de facto number two to Ballmer, with Turner having a strong grasp of business and operations but lacking technological vision. On February 4, 2014, Satya Nadella succeeded Ballmer as CEO.
Ballmer has also served as director of Accenture Ltd. and a general partner of Accenture SCA since October 2001.
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