William Henry "Bill" Gates III (born October 28, 1955 in Seattle, Washington)[4] is an American business magnate, investor, philanthropist, and author. Gates is the former CEO and current chairman of Microsoft, the software company he founded with Paul Allen. He is consistently ranked among the world's wealthiest people[5] and was the wealthiest overall from 1995 to 2009, excluding 2008, when he was ranked third;[6] in 2011 he was the wealthiest American and the second wealthiest person.[7][8] During his career at Microsoft, Gates held the positions of CEO and chief software architect, and remains the largest individual shareholder, with 6.4 percent of the common stock.[9] He has also authored or co-authored several books.
Gates is one of the best-known entrepreneurs of the personal computer revolution. Gates has been criticized for his business tactics, which have been considered anti-competitive, an opinion which has in some cases been upheld by the courts.[10][11] In the later stages of his career, Gates has pursued a number of philanthropic endeavors, donating large amounts of money to various charitable organizations and scientific research programs through the Bill & Melinda Gates Foundation, established in 2000.[12]
Gates stepped down as chief executive officer of Microsoft in January 2000. He remained as chairman and created the position of chief software architect. In June 2006, Gates announced that he would be transitioning from full-time work at Microsoft to part-time work, and full-time work at the Bill & Melinda Gates Foundation. He gradually transferred his duties to Ray Ozzie, chief software architect, and Craig Mundie, chief research and strategy officer. Gates' last full-time day at Microsoft was June 27, 2008. He remains at Microsoft as non-executive chairman.
| Bill Gates | |
|---|---|
 Gates at the World Economic Forum in 2007. | |
| Born | William Henry Gates III October 28, 1955 Seattle, Washington, United States |
| Residence | Medina, Washington, United States |
| Nationality | American |
| Education | Lakeside School class of 1973 |
| Alma mater | Harvard University (dropped out) |
| Occupation | Chairman of Microsoft Co-Chair of the Bill & Melinda Gates Foundation CEO of Cascade Investment Chairman of Corbis |
| Years active | 1975–present |
| Net worth |  US$ 61 billion (2012)[1] |
| Board member of | Berkshire Hathaway |
| Religion | None (Agnostic[2][3]) |
| Spouse | Melinda Gates (m. 1994) |
| Children | 3 |
| Parents | William H. Gates, Sr. Mary Maxwell Gates |
| Signature |  |
| Website | |
Gates was born in Seattle, Washington, to William H. Gates, Sr. and Mary Maxwell Gates. His parents are of English, German, and Scots-Irish descent.[13][14] His father was a prominent lawyer, and his mother served on the board of directors for First Interstate BancSystem and the United Way. Gates's maternal grandfather was J. W. Maxwell, a national bank president. Gates has one elder sister, Kristi (Kristianne), and one younger sister, Libby. He was the fourth of his name in his family, but was known as William Gates III or "Trey" because his father had the "II" suffix.[15] Early on in his life, Gates' parents had a law career in mind for him.[16] When Gates was young, his family regularly attended a Congregational church.[17][18][19]
At 13 he enrolled in the Lakeside School, an exclusive preparatory school.[20] When he was in the eighth grade, the Mothers Club at the school used proceeds from Lakeside School's rummage sale to buy a Teletype Model 33 ASR terminal and a block of computer time on a General Electric (GE) computer for the school's students.[21] Gates took an interest in programming the GE system in BASIC, and was excused from math classes to pursue his interest. He wrote his first computer program on this machine: an implementation of tic-tac-toe that allowed users to play games against the computer. Gates was fascinated by the machine and how it would always execute software code perfectly. When he reflected back on that moment, he said, "There was just something neat about the machine."[22] After the Mothers Club donation was exhausted, he and other students sought time on systems including DEC PDP minicomputers. One of these systems was a PDP-10 belonging to Computer Center Corporation (CCC), which banned four Lakeside students—Gates, Paul Allen, Ric Weiland, and Kent Evans—for the summer after it caught them exploiting bugs in the operating system to obtain free computer time.[23]
At the end of the ban, the four students offered to find bugs in CCC's software in exchange for computer time. Rather than use the system via Teletype, Gates went to CCC's offices and studied source code for various programs that ran on the system, including programs in FORTRAN, LISP, and machine language. The arrangement with CCC continued until 1970, when the company went out of business. The following year, Information Sciences, Inc. hired the four Lakeside students to write a payroll program in COBOL, providing them computer time and royalties. After his administrators became aware of his programming abilities, Gates wrote the school's computer program to schedule students in classes. He modified the code so that he was placed in classes with mostly female students. He later stated that "it was hard to tear myself away from a machine at which I could so unambiguously demonstrate success."[22] At age 17, Gates formed a venture with Allen, called Traf-O-Data, to make traffic counters based on the Intel 8008 processor.[24] In early 1973, Bill Gates served as a congressional page in the U.S. House of Representatives.[25]
Microsoft
Main articles: History of Microsoft and Microsoft
BASIC
Microsoft's BASIC was popular with computer hobbyists, but Gates discovered that a pre-market copy had leaked into the community and was being widely copied and distributed. In February 1976, Gates wrote an Open Letter to Hobbyists in the MITS newsletter saying that MITS could not continue to produce, distribute, and maintain high-quality software without payment.[36] This letter was unpopular with many computer hobbyists, but Gates persisted in his belief that software developers should be able to demand payment. Microsoft became independent of MITS in late 1976, and it continued to develop programming language software for various systems.[35] The company moved from Albuquerque to its new home in Bellevue, Washington on January 1, 1979, after the former rejected his loan application.[34]
During Microsoft's early years, all employees had broad responsibility for the company's business. Gates oversaw the business details, but continued to write code as well. In the first five years, Gates personally reviewed every line of code the company shipped, and often rewrote parts of it as he saw fit.[37]
IBM partnership
IBM approached Microsoft in July 1980 regarding its upcoming personal computer, the IBM PC.[38] The computer company first proposed that Microsoft write the BASIC interpreter. When IBM's representatives mentioned that they needed an operating system, Gates referred them to Digital Research (DRI), makers of the widely used CP/M operating system.[39] IBM's discussions with Digital Research went poorly, and they did not reach a licensing agreement. IBM representative Jack Sams mentioned the licensing difficulties during a subsequent meeting with Gates and told him to get an acceptable operating system. A few weeks later Gates proposed using 86-DOS (QDOS), an operating system similar to CP/M that Tim Paterson of Seattle Computer Products (SCP) had made for hardware similar to the PC. Microsoft made a deal with SCP to become the exclusive licensing agent, and later the full owner, of 86-DOS. After adapting the operating system for the PC, Microsoft delivered it to IBM as PC-DOS in exchange for a one-time fee of $50,000.[40]Gates did not offer to transfer the copyright on the operating system, because he believed that other hardware vendors would clone IBM's system.[40] They did, and the sales of MS-DOS made Microsoft a major player in the industry.[41] Despite IBM's name on the operating system the press quickly identified Microsoft as being very influential on the new computer, with PC Magazine asking if Gates were "The Man Behind The Machine?"[38] He oversaw Microsoft's company restructuring on June 25, 1981, which re-incorporated the company in Washington state and made Gates President of Microsoft and the Chairman of the Board.[34]
Windows
Microsoft launched its first retail version of Microsoft Windows on November 20, 1985, and in August, the company struck a deal with IBM to develop a separate operating system called OS/2. Although the two companies successfully developed the first version of the new system, mounting creative differences caused the partnership to deteriorate. It ended in 1991 when Gates led Microsoft to develop a version of OS/2 independently from IBM.[42]Management style
From Microsoft's founding in 1975 until 2006, Gates had primary responsibility for the company's product strategy. He aggressively broadened the company's range of products, and wherever Microsoft achieved a dominant position he vigorously defended it. He gained a reputation for being distant to others; as early as 1981 an industry executive complained in public that "Gates is notorious for not being reachable by phone and for not returning phone calls."[43]As an executive, Gates met regularly with Microsoft's senior managers and program managers. Firsthand accounts of these meetings describe him as verbally combative, berating managers for perceived holes in their business strategies or proposals that placed the company's long-term interests at risk.[44][45] He often interrupted presentations with such comments as, "That's the stupidest thing I've ever heard!"[46] and, "Why don't you just give up your options and join the Peace Corps?"[47] The target of his outburst then had to defend the proposal in detail until, hopefully, Gates was fully convinced.[46] When subordinates appeared to be procrastinating, he was known to remark sarcastically, "I'll do it over the weekend."[48][49][50]
Gates' role at Microsoft for most of its history was primarily a management and executive role. However, he was an active software developer in the early years, particularly on the company's programming language products. He has not officially been on a development team since working on the TRS-80 Model 100,[51] but wrote code as late as 1989 that shipped in the company's products.[49] On June 15, 2006, Gates announced that he would transition out of his day-to-day role over the next two years to dedicate more time to philanthropy. He divided his responsibilities between two successors, placing Ray Ozzie in charge of day-to-day management and Craig Mundie in charge of long-term product strategy.[52]
Personal life
The Gates's home is an earth-sheltered house in the side of a hill overlooking Lake Washington in Medina. According to King County public records, as of 2006 the total assessed value of the property (land and house) is $125 million, and the annual property tax is $991,000.
His 66,000 sq ft (6,100 m2) estate has a 60-foot (18 m) swimming pool with an underwater music system, as well as a 2,500 sq ft (230 m2) gym and a 1,000 sq ft (93 m2) dining room.[62]
Also among Gates' private acquisitions is the Codex Leicester, a collection of writings by Leonardo da Vinci, which Gates bought for $30.8 million at an auction in 1994.[63] Gates is also known as an avid reader, and the ceiling of his large home library is engraved with a quotation from The Great Gatsby.[64] He also enjoys playing bridge, tennis, and golf.[65][66]
Gates was number one on the Forbes 400 list from 1993 through to 2007 and number one on Forbes list of The World's Richest People from 1995 to 2007 and 2009. In 1999, Gates's wealth briefly surpassed $101 billion, causing the media to call him a "centibillionaire".[67] Since 2000, the nominal value of his Microsoft holdings has declined due to a fall in Microsoft's stock price after the dot-com bubble burst and the multi-billion dollar donations he has made to his charitable foundations. In a May 2006 interview, Gates commented that he wished that he were not the richest man in the world because he disliked the attention it brought.[68] Gates has several investments outside Microsoft, which in 2006 paid him a salary of $616,667 and $350,000 bonus totalling $966,667.[69] He founded Corbis, a digital imaging company, in 1989. In 2004 he became a director of Berkshire Hathaway, the investment company headed by long-time friend Warren Buffett.[70] In March 2010 Bill Gates was bumped down to the second wealthiest man behind Carlos Slim.
Philanthropy
Further information: Bill & Melinda Gates Foundation
Gates began to appreciate the expectations others had of him when public opinion mounted suggesting that he could give more of his wealth to charity. Gates studied the work of Andrew Carnegie and John D. Rockefeller, and in 1994 sold some of his Microsoft stock to create the William H. Gates Foundation. In 2000, Gates and his wife combined three family foundations into one to create the charitable Bill & Melinda Gates Foundation, which is the largest transparently operated charitable foundation in the world.[71] The foundation allows benefactors access to information regarding how its money is being spent, unlike other major charitable organizations such as the Wellcome Trust.[72][73] The generosity and extensive philanthropy of David Rockefeller has been credited as a major influence. Gates and his father met with Rockefeller several times, and modeled their giving in part on the Rockefeller family's philanthropic focus, namely those global problems that are ignored by governments and other organizations.[74] As of 2007, Bill and Melinda Gates were the second-most generous philanthropists in America, having given over $28 billion to charity.[75] They plan to eventually give 95% of their wealth to charity.[76]The foundation was at the same time criticized because it invests assets that it has not yet distributed with the exclusive goal of maximizing return on investment. As a result, its investments include companies that have been charged with worsening poverty in the same developing countries where the Foundation is attempting to relieve poverty. These include companies that pollute heavily, and pharmaceutical companies that do not sell into the developing world.[77] In response to press criticism, the foundation announced in 2007 a review of its investments, to assess social responsibility.[78] It subsequently canceled the review and stood by its policy of investing for maximum return, while using voting rights to influence company practices.[79] The Gates Millennium Scholars program has been criticized for its exclusion of Caucasian students.[80][81]
Gates's wife urged people to learn a lesson from the philanthropic efforts of the Salwen family, which had sold its home and given away half of its value, as detailed in The Power of Half.[82] Gates and his wife invited Joan Salwen to Seattle to speak about what the family had done, and on December 9, 2010, Gates, investor Warren Buffett, and Mark Zuckerberg (Facebook's CEO) signed a promise they called the "Gates-Buffet Giving Pledge", in which they promised to donate to charity at least half of their wealth over the course of time.[83][84][85]
Recognition
In 1987, Gates was officially declared a billionaire in the pages of Forbes' 400 Richest People in America issue, just days before his 32nd birthday. As the world's youngest self-made billionaire, he was worth $1.25 billion, over $900 million more than he'd been worth the year before, when he'd debuted on the list.[86]
In 1994, he was honoured as the twentieth Distinguished Fellow of the British Computer Society. Gates has received honorary doctorates from Nyenrode Business Universiteit, Breukelen, The Netherlands, in 2000;[90] the Royal Institute of Technology, Stockholm, Sweden, in 2002; invited in 2003 to deliver the keynote address[91] of the Golden Jubilee of the Indian Institute of Technology,held in San Jose, California;[92] Waseda University, Tokyo, Japan, in 2005; Tsinghua University, Beijing, China, in April 2007;[93] Harvard University in June 2007;[94] the Karolinska Institutet, Stockholm, in January 2008,[95] and Cambridge University in June 2009.[96] He was also made an honorary trustee of Peking University in 2007.[97] Gates was also made an honorary Knight Commander of the Order of the British Empire (KBE) by Queen Elizabeth II in 2005,[98] in addition to having entomologists name the Bill Gates flower fly, Eristalis gatesi, in his honor.[99]
In November 2006, he and his wife were awarded the Order of the Aztec Eagle for their philanthropic work around the world in the areas of health and education, particularly in Mexico, and specifically in the program "Un país de lectores".[100] In October 2009, it was announced that Gates will be awarded the 2010 Bower Award for Business Leadership of The Franklin Institute for his achievements in business and for his philanthropic work. In 2010 he was honored with the Silver Buffalo Award by the Boy Scouts of America, its highest award for adults, for his service to youth.[101]
In 2011, Bill Gates was ranked as the fifth most powerful person in the world, according to rankings by Forbes magazine.[102]
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