Steve Ballmer steps down as board member at Microsoft
Dear Satya,
As I approach the six month mark of my retirement and your appointment
as CEO, I have been reflecting on my life, my ongoing ownership of
Microsoft stock, and my involvement with the company. I have reached
some conclusions and wanted to share them with you. I know August is the
key month during which the company starts to prepare the proxy
statement for the next shareholders’ meeting, and so these thoughts are
probably timely for that too.
First, Microsoft has been my life’s work and I am proud of that and
excited by what I see in front of the company and this leadership team.
There are challenges ahead but the opportunities are even larger. No
company in the world has the mix of software skills, cloud skills, and
hardware skills we have assembled. We draw talent as well as any company
in the world. We have the profitability to invest in long-term
opportunities and still deliver superior shorter term performance.
You’re off to a bold and exciting start.
Microsoft will need to be bold and make big bets to succeed in this
new environment. Writing great software is a tremendous accomplishment
and selling software has been a fabulous business. In the mobile-first,
cloud-first world, software development is a key skill, but success
requires moving to monetization through enterprise subscriptions,
hardware gross margins, and advertising revenues. Making that change
while also managing the existing software business well requires a
boldness and fearlessness that I believe the management team has. Our
board must also support and encourage that fearlessness for shareholders
to get the best performance from Microsoft. You must drive that.
I had not spent any time really contemplating my post-Microsoft life
until my last day with the company. In the six months since leaving, I
have become very busy. I see a combination of the Clippers, civic
contribution, teaching and study taking a lot of time. I have confidence
in our approach of mobile-first, cloud-first, and in our primary
innovation emphasis on platforms and productivity and the building of
capability in devices and services as core business drivers. I hold more
Microsoft shares than anyone other than index funds and love the mix of
profits, investments and dividends returned in our stock. I expect to
continue holding that position for the foreseeable future.
Given my confidence and the multitude of new commitments I am taking
on now, I think it would be impractical for me to continue to serve on
the board, and it is best for me to move off. The fall will be hectic
between teaching a new class and the start of the NBA season so my
departure from the board is effective immediately.
I bleed Microsoft — have for 34 years and I always will. I continue to
love discussing the company’s future. I love trying new products and
sending feedback. I love reading about what is going on at the company.
Count on me to keep ideas and inputs flowing. The company will move to
higher heights. I will be proud, and I will benefit through my share
ownership. I promise to support and encourage boldness by management in
my role as a shareholder in any way I can.
All the best,
Steve
Satya Nadella response to Steve Ballmer
Steve,
First, thank you for all of your support during my transition this
year and for the past 34 years. It’s been a great privilege to have
worked with you and learned from you. Under your leadership, we created
an incredible foundation that we continue to build on — and Microsoft
will thrive in the mobile-first, cloud-first world.
While your insights and leadership will be greatly missed as part of the board, I understand and support your decision.
As you embark on your new journey, I am sure that you will bring the
same boldness, passion and impact to your new endeavors that you brought
to Microsoft, and we wish you incredible success. I also look forward
to partnering with you as a shareholder.
On behalf of all of Microsoft and the Board of Directors, thank you.
Satya
