Microsoft CEO Steve Ballmer's worth jumps $800m as it's announced he is to retire within a year
Ballmer, the successor to CEO Bill Gates, will step down within next 12 months. No word on who will take over.
BY ELIZABETH LAZAROWITZ / NEW YORK DAILY NEWS
PUBLISHED: FRIDAY, AUGUST 23, 2013, 12:04 PM
UPDATED: FRIDAY, AUGUST 23, 2013, 6:27 PM
JEFF CHIU/AP
Microsoft CEO Steve Ballmer speaks at a Microsoft event in San Francisco earlier this year.
Microsoft announced on Friday that CEO Steve Ballmer will retire in the next year after leading the technology giant for more than a decade.
His unexpectedly early departure comes a little over a month after the company announced a major restructuring aimed at helping speed the software company’s transformation in a world now dominated by mobile gadgets.
Ballmer, who attended Harvard University with founder Bill Gates and took the top spot from him in 2000, will stay on until the company finds a successor. Gates will be part of a special search committee charged with finding a replacement.
“There is never a perfect time for this type of transition, but now is the right time,” Ballmer, 57, said in a statement.
Investors agreed: Microsoft's shares surged 7% after the announcement to $34.64 in early afternoon trading.
Under Ballmer, Microsoft had been slammed by critics for not moving fast enough as demand for PCs — many of which are powered by Microsoft's Windows software — dwindled.
Although the company still rakes in profits, it has lost billions in market value since Ballmer took over at the height of the tech bubble.
While potentially ego-bruising, the stock price surge means Ballmer’s net worth jumped by about $800 million in one day. In March, he was worth a hefty $15.2 billion, according to Forbes.
Consumers gave a lukewarm response to its new Windows 8 operating system, which was released in October, and the company took a $900 million charge related to its touchscreen Surface tablet amid sputtering sales.
“It's a recognition that the things they've done so far, especially with Windows 8 and devices like the Surface, haven't been enough to guarantee them a successful transition to the post-PC world,” Michael Turits, an equity analyst at Raymond James, told the Daily News.
Microsoft has been scrambling to catch up as companies like Apple and Google dominate the tech scene, especially in hot areas such as smartphones and cloud computing.
Read more: http://www.nydailynews.com/news/national/microsoft-ceo-steve-ballmer-calling-quits-article-1.1434945#ixzz2cpx84UWv
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