Microsoft investors push for chairman Gates to step down

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NEW YORK/SEATTLE — Three of the top 20 investors in Microsoft Corp are lobbying the board to press for Bill Gates to step down as chairman of the software company he co-founded 38 years ago, according to people familiar with matter.

Reuters

While Microsoft chief executive Steve Ballmer has been under pressure for years to improve the company’s performance and share price, this appears to be the first time that major shareholders are taking aim at Gates, who remains one of the most respected and influential figures in technology.

A representative for Microsoft declined to comment on Tuesday.
There is no indication that Microsoft’s board would heed the wishes of the three investors, who collectively hold more than 5% of the company’s stock, according to the sources.

They requested the identity of the investors be kept anonymous because the discussions were private.

Gates owns about 4,5% of the $277 billion company and is its largest individual shareholder.

The three investors are concerned that Gates’ role as chairman effectively blocks the adoption of new strategies and would limit the power of a new chief executive to make substantial changes. In particular, they point to Gates’ role on the special committee searching for Ballmer’s successor.

They are also worried that Gates — who spends most of his time on his philanthropic foundation — wields power out of proportion to his declining shareholding.

Gates, who owned 49% of Microsoft before it went public in 1986, sells about 80 million Microsoft shares a year under a pre-set plan, which if continued would leave him with no financial stake in the company by 2018.

He lowered his profile at Microsoft after he handed the CEO role to Ballmer in 2000, giving up his day-to-day work there in 2008 to focus on the $38 billion Bill & Melinda Gates Foundation.

In August, Ballmer said he would retire within 12 months, amid pressure from activist fund manager ValueAct Capital Management.

Microsoft is now looking for a new CEO, though its board has said Ballmer’s strategy will go forward. He has focused on making devices, such as the Surface tablet and Xbox gaming console, and turning key software into services provided over the Internet.

Some investors say that a new chief should not be bound by that strategy.

News that some investors were pushing for Gates’ ouster as chairman provoked mixed reactions from other shareholders.

7 COMMENTS

  1. GOOD ADVICE: Do something for yourself, for your family. Don’t waste your time talking politics while others are enjoying their lives with money without politics. See how this Zimbabwean poor woman became a millionaire just by buying and selling solar panels to the people in rural areas/villages so they can have electricity easily and very cheaply. Very interesting. Go to SOLARTECH [dot] CO, not [dot] com, to see the methods and companies she was using. SOLARTECH [dot] CO, not [dot] com, Wake up Africans

  2. @Betty does your post co-relate with the story above .Sure iwe unenge mugwere wefungwa zvokwadi kana uchiita mari ita wega wahwa nani toida . Unoda kuvamba uchinyepera unobetsera vanhu nemaadvice pfutseki gara nawo .You can form your organisation which can give advice to the community not to post rubbish . Huya neadvice yako kuno kuMberengwa zvimwe vanhu vangakuhwa nokuti varipazhara

  3. Bill must go, he attracted the wrong attention with his fame, irl he is not what he is said to be in the eyes of blind fanboys, this will benefit microsoft if it goes down this way 🙁 maybe Elop will do something better(ish) after Ballmer

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