January 16, 2003 5:09 PM PST

Gates' dividend payout: $100 million

Related Stories

Microsoft sets dividend, splits stock

January 16, 2003
Microsoft Chairman Bill Gates will rake in almost $100 million per year in potentially tax-free income from the company's newly instated stock dividend program.

Microsoft announced Thursday that it plans to issue its first-ever annual dividend to shareholders on March 7. The payout will be 16 cents for each share on record as of Feb. 21.

Based on Microsoft's latest proxy statement, filed Sept. 19, 2002, with the Securities and Exchange Commission, Gates has about 621 million shares, or 11.6 percent of the company. That would give him a dividend bonanza of $99.48 million.

CEO Steve Ballmer, with some 235 million shares, would get $37.68 million per year.

President Bush recently revealed details of an economic stimulus plan that includes a proposal to eliminate personal taxes on stock dividends. If passed by Congress, the provision would save Gates some $38.4 million in taxes, based on the current top income tax rate of 38.6 percent. Ballmer would save $14.54 million.

The total payout will be $870.6 million, a fraction of Microsoft's $40.5 billion cash reserves.

1 comment

Join the conversation!
Add your comment
www.payoneer-affiliates.com
Posted by Mike_Cooper (15 comments )
Reply Link Flag
 

Join the conversation

Add your comment

The posting of advertisements, profanity, or personal attacks is prohibited. Click here to review our Terms of Use.

What's Hot

Discussions

Shared

RSS Feeds

Add headlines from CNET News to your homepage or feedreader.