How former Microsoft CEO Steve Ballmer surpassed tech giants Mark Zuckerberg, and Google's cofounders with $120B fortune

Move over, Warren Buffett and Mark Zuckerberg! There's a new billionaire in the tech world, and his name is Steve Ballmer. People may remember him as the former CEO of Microsoft, but what you may not know is that he's now wealthier than some of the biggest names in the industry. According to the Bloomberg Billionaire Index, Ballmer's estimated fortune of $120 billion places him sixth on the list, outshining tech gurus like Larry Page and Sergey Brin, the cofounders of Google.

How did Steve Ballmer amass such impressive wealth?

The most intriguing part about Ballmer ranking sixth on Bloomberg Billionaire Index is that he is not the founder of Microsoft, and he stepped down as CEO almost a decade ago. It all comes down to a contract negotiation Ballmer made when he joined Microsoft as its 30th employee back in 1980.

Forbes reveals that he secured a base salary of $50,000, along with a 10% cut of the profit growth as a part of his compensation. As Microsoft flourished under his leadership, Ballmer's share of the profits also multiplied.

However, Ballmer eventually relinquished the profit share and opted for a sizeable equity stake in the company. By the time of his retirement as CEO in 2014, Ballmer held 333 million shares, equivalent to 4% ownership of Microsoft. Bloomberg's estimates suggest that Ballmer still maintains a similar stake, making him worth more than $100 billion based on the company's current market capitalization of $2.6 trillion.

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Apart from his Microsoft fortunes, Ballmer is also the owner of the LA Clippers. His investments and Microsoft’s interest in artificial intelligence and $10 billion investment in OpenAI earlier this year, have increased the company's growth prospects even further. With Microsoft stock soaring 44% this year alone, the surge contributed to a $34 billion rise in Ballmer's net worth in 2023.

While other tech titans like Zuckerberg, Page, and Brin have also witnessed an increase in wealth but they are still far from their all-time high. On the other hand, Ballmer's Microsoft shares have reached a record-breaking high, which has propelled him up the billionaire list. Although he may still fall behind Larry Ellison and Bill Gates, who are both worth over $130 billion, Ballmer's success as a retired CEO and non-founder has placed him in a highly desirable position.

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