Bill Gates Is Downsizing His Role at Microsoft

Thursday Bill Gates announced his plans for transitioning out of his current hands-on role at Microsoft . From TheStreet.com (June 15, 2006):

Microsoft Chairman Bill Gates announced Thursday that he will move out of a day-to-day role at the company to spend more time with his charitable foundation.

The giant software company announced a two-year transition process to ensure that there is a “smooth and orderly transfer” of Gates’ daily responsibilities. After July 2008, Gates will continue to serve as the company’s chairman and as an adviser on key development projects.

Following the news, prices of Microsoft shares dropped immediately to a two-year low. From TheStreet.com (June 16, 2006):

The shares fell 11% in one day in the wake of the news, as margin and earnings estimates were slashed dramatically. “Something happened that made them panic,” one analyst says of the leadership in Redmond.

So now with Gates planning to leave his day-to-day duties and act as a figurehead, shareholders see one less steady hand on the wheel.

“He’s a great leader. I know people that worked directly for him and who had him do their performance reviews,” says the New York money manager. “The idea is that everyone knows or at least behaves like they could be interrogated by the most knowledgeable person in the company.

“I don’t know what happens when that stops,” says the money manager.

What will the impact be on our workaday lives? Will this be an added pressure on Microsoft, or will it remain the market leader?

Today’s Canada.com has a longer report on the changes at Microsoft. However, one thing will remain constant:

Gates also said he had no plans to give up the distinction of being the company’s largest shareholder.

“I’m proud of that,” he said.