Originally Posted by Jume
I wonder how it looks on your personal bank account printout when someone transfers you 1.37M$
Since bonuses get paid as salary, it's subject to withholding, he'll net about $871,000 of that. I suspect he'll pay 35% in Federal Withholding and 1.4% in Medicare. I assume he's already "maxed out" on Social Security payments and his 401K for the year. There's no State Tax in Washington. Don't know if there are any local income taxes where he lives. He probably doesn't have to pay Health Insurance on the bonus.
Personally, Ballmer's personality has always annoyed me and I've never liked much of what Microsoft has produced (Excel perhaps being an exception). Having said that, they remain an enormously successful company, although I agree with the critics that they don't seem to have any future vision. The fact is that in the enterprise, where the money is, they dominate in both OS and in enterprise software. Sure, there are departments using Macs and people are using iPhones and the like to link to Exchange Server, but I don’t see anyone attempting to compete with Microsoft in the areas where they dominate. Some would say Google apps is an attempt, but I don’t see it. I’m actually surprised someone else hasn’t tried to be the “third operating system” looking at what Apple has done with a Unix-based system, but attempting to be stronger in the areas where Apple is weaker.
Originally Posted by TBell
Microsoft pays 19 cents a share a quarter as a dividend. Last I checked Ballmer held something close to 350 milion shares of Microsoft. I am too lazy to figure out what that equals a year, but I am sure the amount is phenomenal. I probably also don't want to know.
Originally Posted by ConradJoe
I'm having trouble with all of the zeros. If he's worth 13900000000, and made 1370000 , what would be the equivalent salary for a middle class guy guy who is worth $100,000?
IOW, it looks to me like $1.3M is a drop in the bucket to him. I'm wondering how small a drop $1.3M is to a guy worth over ten billion.
Are we talking 1% or a fraction of 1%? Somebody who is comfortable with magnitudes please do this in your head.
I'm bemused by the posters who criticize Ballmer's performance as if they could do better, but can't calculate some basic arithmetic. That’s $266 million a year in dividends and the $1.37m in salary compared to wealth of $13.9 billion is like $98.56 to a person who had wealth of $100,000.
Once they’re super-rich, it’s not about the money. It’s about the power. Most of these execs are workaholics and they define themselves by their title and power. Some of these guys are so protected, they have a hard time dealing with the ordinary things in life once they leave. The only one I think of who gave it up at a relatively young age to accomplish other things is Bill Gates and I have to give him credit for that, especially since so much of his current work is with various charities supporting health and education throughout the world. I wish the other super-rich execs would follow his lead in terms of giving away large portions of their weath.