Microsoft investors push for Gates to quit
NEW YORK/ SEATTLE - Reuters
Microsoft Chairman Bill Gates speaks during Microsoft’s annual shareholder meeting at the Meydenbauer Center in Bellevue, Washington. REUTERS photoThree 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.
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 Oct.1.
There is no indication that Microsoft’s board would heed the wishes of the three investors, who collectively hold more than 5 percent 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 percent of the $277 billion company and is its largest individual shareholder.
Negative effect on adopting new policies
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 percent 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.