posted on June 15, 2006 04:47:20 PM
Microsoft Corp. Chairman Bill Gates said Thursday he will transition from day-to-day responsibilities at the company he co-founded to concentrate on the charitable work of the Bill & Melinda Gates Foundation.
Gates, 50, will continue as the company's chairman after transferring his duties over a two-year period.
"This was a hard decision for me," said Gates, who founded the world's largest software company with childhood friend Paul Allen. "I'm very lucky to have two passions that I feel are so important and so challenging. As I prepare for this change, I firmly believe the road ahead for Microsoft is as bright as ever."
Ray Ozzie, Microsoft's Chief Technical Officer, will immediately assume Gates' title as chief software architect and begin working with Gates on overseeing all software technical design.
Chief Technical Officer Craig Mundie will immediately take the new title of chief research and strategy officer and will work with Gates in those areas. Mundie also will partner with general counsel Brad Smith to guide Microsoft's intellectual property and technology policy efforts.
"Gates is extremely passionate about his foundation. He's not just a philanthropist; he's someone who really wants to get in there and make a difference with his mind and his money," says CBS News technology analyst Larry Magid. "If he can put the same skills and talent and energy that he put into one of the world's most influential companies into solving some of the world's most serious problems, that's good for everyone."
Gates is ranked by Forbes magazine as the world's richest man, with an estimated wealth of about $50 billion. That great wealth, he said, also brings great responsibility, and he repeated his often-spoken desire to give away the bulk of his fortune to charity. The Gates Foundation focuses on education and global health needs.
"Just as Microsoft has taken off in ways I never expected, so has the work of the foundation," he said.
In January 2000, Gates assumed the role of chief software architect and Steve Ballmer took over the role of chief executive officer. Ballmer remains responsible for all day-to-day operations and the company's business strategy.
The world "has had a tendency to focus a disproportionate amount of attention on me," Gates said, when in reality, Microsoft is a company with an extraordinary depth and breadth of talent.
"Our leadership team has never been stronger," he said.
"Bill and I are confident we've got a great team that can step up to fill his shoes and drive Microsoft innovation forward without missing a beat," Ballmer said.
Under Gates, Microsoft has grown to more than 61,000 employees in more than 100 countries. It generates almost $1 billion in profits every month, reports CBS News correspondent Anthony Mason.
Gates and Allen started Microsoft in 1975. Gates took Microsoft public in 1986 and was the company's chairman and CEO until 2000, the year he and his wife formed the Bill & Melinda Gates Foundation, whose assets now total $29.1 billion.
"Microsoft is going to survive Gates' departure form his day-to-day responsibilities. This is a company that has a large cadre of executives and experienced software architects, including Ray Ozzie, who is highly regarded both inside and outside Microsoft," Magid says.
For the past six years Gates has focused on Microsoft's software development as the company's chairman and chief software architect.
Ozzie, 50, worked on the first electronic spreadsheet, VisiCalc, in the early 1980s. In 1983, he joined Lotus Development Corp., Microsoft's archrival at the time, to develop Lotus Symphony, a business software suite.
He later founded Groove Networks, where he developed Groove Virtual Office. Microsoft acquired Groove Networks in April 2005 and named Ozzie chief technical officer.
Mundie, 56, joined Microsoft in 1992 to create and run its Consumer Platforms Division, which was responsible for non-personal computer software. Mundie also started Microsoft's digital TV efforts. His current responsibilities include global technology policy and a variety of technical and business incubation efforts.
Ozzie and Mundie will continue to report to Gates. At an unspecified time during the two-year transition period, they will shift to reporting to Ballmer.
The news was announced after financial markets closed. Earlier, shares in Microsoft rose 19 cents, or 0.87 percent, to close Thursday at $22.07 on the Nasdaq Stock Market. Shares lost 10 cents in after-hours trading.
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People put their hand on the bible, and swear to uphold the constitution. They do not put their hand on the constitution, and swear to uphold the bible.
posted on June 15, 2006 04:55:55 PM
It's no big secret that I can't stand Microsoft but I watched an interview with Gates today and was really impressed.
When asked why he had made this decision he said that he really did not feel that it would be healthy to leave his fortune to his kids so it was time to start concentrating on where it should go. Looks like the battle against AIDS and Malaria (along with 20 some less common fatal predominantly third word diseases) was the winner.
I think it will be interesting to look at the long term effects that a $50 billion injection in funds into these battles will make and, between the Microsoft and this new endeavor, which will become his ultimate legacy.
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People put their hand on the bible, and swear to uphold the constitution. They do not put their hand on the constitution, and swear to uphold the bible.
posted on June 16, 2006 09:34:45 PM
I think that is a fabulous idea for spreading his wealth out to these causes. I really think he is a very nice decent person beyond being a wealthy snob like some others out there.
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I married my wife for her looks...but not the
ones she's been giving me lately!
posted on June 17, 2006 06:03:41 AM
I've noticed ever since he married his "image" has changed. All I heard before was what a ~not very nice guy~ he was (you can insert whatever bad word you choose) and now you hear he's donating more money than I will ever see in my lifetime, even if I won one of those huge mega-lotteries.
If all of corporate America would follow suit, we could eradicate many, many of the ills of society.
He is setting a fine example, hopefully others will follow.
