Bloomberg Billionaires Index: Bill Gates' ex-assistant, Steve Ballmer is now world's 5th richest

Steve Ballmer, Microsoft's former CEO and Bill Gates' ex-assistant, has seen a remarkable surge in his wealth, propelling him up the ranks of the world's richest individuals. He is now poised to potentially surpass Microsoft's iconic co-founder and former boss, Bill Gates, in net worth.

Ballmer's fortune has increased by an estimated $29 billion this year, reaching around $115 billion, and securing him the fifth spot on the Bloomberg Billionaires Index. His net worth is now just $6 billion shy of Gates, who holds the fourth position with $121 billion. This is a significant change from three months ago when the gap was $17 billion. Ballmer now stands ahead of other prominent billionaires like Larry Ellison ($114 billion), Warren Buffett ($111 billion), Larry Page ($110 billion), Mark Zuckerberg ($108 billion), and Sergey Brin ($105 billion), as per the index.

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Ballmer's early days at Microsoft

Ballmer's journey at Microsoft began in 1980 when he joined as an assistant to the president, though his role evolved into more of a business manager than a traditional assistant. Originally, he negotiated a $50,000 base salary along with 10% of the profit growth he generated. As his share of the profits grew substantially, he eventually exchanged it for a substantial equity stake, according to Forbes.

Over the years, Ballmer steadily climbed the corporate ladder to become Microsoft's CEO in 2000. He retired from this position in 2014, holding 333 million shares, equivalent to a 4% stake, as indicated in regulatory filings. Bloomberg assumes that he has retained most of these shares, valuing them at over $100 billion today, based on Microsoft's current stock price. He is also likely to have accumulated billions of dollars in dividends during this time.

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Factors driving Ballmer's wealth surge

Ballmer's wealth has seen a remarkable surge this year, partly attributed to the artificial intelligence boom, which has driven up the value of Microsoft stock. Microsoft's investment in OpenAI, the parent company of ChatGPT, in the spring has generated optimism that it could challenge Google-owner Alphabet's dominant position in internet search, resulting in a 38% increase in Microsoft shares over the past 10 months.

Unique position in the rich list

It's important to note that Ballmer stands out among the top 10 richest people on Bloomberg's rich list. Unlike individuals such as Elon Musk, Bernard Arnault, Jeff Bezos, and others, who amassed their wealth through companies they founded or currently lead, Ballmer is neither the founder nor the current CEO of Microsoft.

If he does manage to surpass Bill Gates, who has diversified his wealth away from Microsoft stock and made significant donations to the Bill & Melinda Gates Foundation and other charitable causes, it would be a rare case where an employee becomes wealthier than the founder of the company.