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Gates gives away $3bn bonus

Steven Musil CNET News.com

Published: 21 Jul 2004 08:50 BST

Microsoft chairman Bill Gates plans to give himself a $3bn (£1.6bn) bonus.

But unlike the majority of executives in corporate America, the world's richest man doesn't plan to keep a penny of it.

As part of a plan announced Tuesday to distribute $75bn to shareholders during the next four years, stockholders will receive a one-time dividend of $3 per share. As the company's largest stockholder, with 1.1bn shares, Gates stands to earn about $3bn.

Gates said on Tuesday that he plans to donate the windfall to the Bill & Melinda Gates Foundation, which works to expand access to technology through public libraries and improve global health. The foundation estimates its endowment at $27bn.

"The pledge today is recognition that our world, the nation and our region -- now more than ever -- can and should dramatically improve equity in health, education, and access to information and human services for vulnerable families," Gates said in a statement on Tuesday.

In the past, the foundation has pledged $60m for research into microbicides to help women prevent the spread of HIV and $40m to create 70 schools dedicated to helping students earn high-school diplomas.

But Gates isn't going home empty-handed.

Microsoft also plans to spend about $14bn to boost its dividend to a total of 32 cents per share a year. That should net Gates about $384m.

Chief executive Steve Ballmer, who owns about 411 million shares of Microsoft, stands to make $1.23bn from the one-time dividend and about $131m from the regular dividend boost.

The one-time payout is conditional on shareholder approval.