Local Maritz Top Candidate to Replace Ballmer as Microsoft CEO

Paul Maritz of Mercer Island is a top candidate to replace Steve Ballmer as CEO of Microsoft. He was with Microsoft from 1986 to 2000. His last position was executive vice president of the Platforms Strategy and Developer Group. He was part of the 5-person executive management team and, according to Wikipedia, was the third-ranking executive behind Bill Gates and Steve Ballmer. He was responsible for most of Microsoft's desktop and server software, including Windows and Internet Explorer.

From Brier Dudley’s 9/24/13 column in The Seattle Times:

“Fortunately for Microsoft and the future health of the Puget Sound economy there are two strong contenders to replace outgoing Chief Executive Steve Ballmer — one at hand and the other nearby.

. . .

“The obvious nearby candidate is Paul Maritz, a Zimbabwe native who led Microsoft’s platforms business and developer relations when he left the company in 2000 after a 14-year run.

“Maritz went on to lead strategy at business computing giant EMC and serve as chief executive of Palo Alto, Calif.-based virtualization pioneer VMware, but all the while kept his home on Mercer Island.”

Maritz’s local mansion is on the southwest point of Mercer Island near Paul Allen’s campus/compound. A previous post with more information about Maritz and his career and accomplishments was on 2/22/12.

Steve Ballmer’s local mansion is on the east side of Hunt Point adjacent to and south of the McCaw’s, formerly Kenny G’s, compound. Previous posts about Ballmer were on 5/23/12 (Forbes article about worst CEO) and 11/17/10 (Ballmer mansion).

Paul Ryan at McCaw Family’s Hunts Point Compound

Vice Presidential Candidate Paul Ryan attended fund raisers in Hunts Point and Medina on September 10, 2012. The $1,000 per person afternoon reception was at the McCaw family’s compound and hosted by Bruce and Jolene McCaw. The Seattle Times reported the two-hour event was attended by more than 200 people. Ryan gave a speech on economic issues and higher paying guests received photos of themselves with Ryan.

The McCaw family purchased the compound in 1999 from Kenny G (4/30/12 post below) in a private transaction estimated at more than $20 million. The two mansions have 15,810 sq ft on 4.3 acres with 327 feet of waterfront, 8 bedrooms and 10.5 baths. Craig and Susan McCaw and their family were (and maybe still are) living here.

Craig was the leader or the world famous McCaw brothers, Bruce (1946- ), Craig (1949- ), John (1951- ) and Keith (1953-2002). Keith and John formerly lived in Madison Park and Bruce sold his Medina Groat Point estate in 2011 (2/13/11 post) and may have moved here. The brothers were the pioneers of the cellular phone industry and sold their company, McCaw Cellular, for $11.5 billion in 1994.

The evening $25,000 per couple event was at undisclosed location in Medina. An earlier in the year event for Mitt Romney (12/29/12 post) was held at the mansion of Peter Neupert, a former Drugstore.com and Microsoft executive. He hosted a similar event in the 1990s for President George W. Bush. Neupert’s mansion is on Evergreen Point Road south of Bill Gates’ campus but not on the water. The mansion is 8,000 sq ft on 5.4 acres which is one of the largest lots in Medina.

Ballmer Worst CEO - Forbes

Steve Ballmer’s Hunts Point Mansion

“#1 – Steve Ballmer, Microsoft. Without a doubt, Mr. Ballmer is the worst CEO of a large publicly traded American company today.” This is the first sentence about Steve Ballmer in a 5/12/12 Forbes article by Adam Hartung titled: “Oops! Five CEOs Who Should Have Already Been Fired (Cisco, GE, WalMart, Sears, Microsoft)”

The article continues: “Not only has he singlehandedly steered Microsoft out of some of the fastest growing and most lucrative tech markets (mobile music, handsets and tablets) but in the process he has sacrificed the growth and profits of not only his company but “ecosystem” companies such as Dell, Hewlett Packard and even Nokia. The reach of his bad leadership has extended far beyond Microsoft when it comes to destroying shareholder value – and jobs.

“Microsoft peaked at $60/share in 2000, just as Mr. Ballmer took the reins. . . only rarely made it back to its current low $30s value. . . execution of new rollouts were constantly delayed, and ended up with products so lacking in any enhanced value . . . as Apple took the leadership position in personal technology.

“So today . . . Microsoft is a PC company, nothing more, as demand for PCs shifts to mobile. . . An insane bet for any CEO – and one that would have been avoided entirely had the Microsoft Board replaced Mr. Ballmer years ago . . .

“Although he’s #19 on Forbes list of billionaires, Mr. Ballmer should not be allowed to take such incredible risks with investor money and employee jobs. Best he be retired to enjoy his fortune rather than deprive investors and employees of building theirs.”

Steve joined Microsoft in 1980 for a percentage of the company, a $50,000 annual salary and stock options. He was Microsoft’s 24th employee and first manager other than Gates and Allen. The Hunts Point mansion of Steve and Connie Ballmer is pictured above. They purchased the estate in 1987 for $1.3 million and extensively renovated the buildings, but maintained their charm, in 1991. The mansion and property has a $10 million estimated value. The main house is 4,175 sq ft and the property is 2.09 acres with 160 feet of waterfront. It is adjacent to the south of Craig McCaw’s (formerly Kenny G’s) mansion (4/30/12 post). The neighborhood is covered in a 2/16/11 Lake Washington Cruising post.

Kenny G returns home to Seattle

Craig McCaw’s – formerly Kenny G’s – Hunts Point Home

Kenny G (Gorelick) returned home last week for eight performances at Seattle’s Jazz Alley. A review of his performances was in The Seattle Times on 4/27/12.

He used to live on the Hunts Point property, with two mansions, pictured above. He was born in Seattle and went to Franklin HS where he played in the jazz band and played on the golf team. He is now one of the top celebrity amateur golfers. On summer evenings when he lived in Hunts Point he would sometimes sit on the end of the dock and play his saxophone. His beautiful music would resonate throughout the cove.

Kenny G won the 1994 Grammy Award for Best Instrumental Composition Forever in Love. He is best known for his saxophone playing. He is the best selling instrumentalist in the world with over 70 million singles and albums sold. His album Breathless sold 12 million copies. Songbird was his first number one singles hit in 1986. His other popular singles include Forever In Love, Sentimental, Silhouette and The Wedding Song. He composes and writes most of his songs along with songs for others.

This property is now the home (LW 130 Homes page 152 and 153) of Craig and Susan McCaw. It was purchased in 1999 from Kenny G in a private transaction estimated at more than $20 million. The two mansions have 15,810 sq ft on 4.3 acres with 327 feet of waterfront, 8 bedrooms and 10.5 baths.

Susan is a former U.S. Ambassador to Austria. Craig was the leader or the world famous McCaw brothers, Bruce (1946- ), Craig (1949- ), John (1951- ) and Keith (1953-2002). Keith and John formerly lived in Madison Park (4/16/12 LW Cruising post) and Bruce recently sold his Medina estate (2/13/11 post). The brothers grew their deceased (1969) father’s, Elroy’s, businesses into the 20th largest cable carrier in the U.S. In the early 1980s they started in the fledging cellular phone industry. They founded Kirkland-based McCaw Cellular Communications, Inc. in 1984. In 1986 they sold the cable business for $750 million and bought MCI’s wireless operations for $122 million. McCaw Cellular went public in 1987 raising $2 billion. In 1994, with Craig as CEO, McCaw Cellular was sold to AT&T for $11.5 billion. Following the sale Craig’s net worth was $2.6 billion and each of the brothers’ was slightly less.

Kenny G is a friend of the McCaw families and performs at family weddings and other events. It is rumored that he stays in the 4,760 sq ft guest house in the lower left (partially obscured by trees) of the bottom picture when he is in the Seattle area. After selling the Hunts Point property he purchased a Malibu, CA compound on the oceanfront from actor Leonardo DiCaprio.

Microsoft’s Ballmer’s Mansion

Steve Ballmer’s Hunts Point Estate

The Seattle Times reported that many stockholders at Microsoft’s 11/16/10 annual meeting “grumbled about Microsoft’s languishing stock price.” Click here CEO Steve Ballmer conducted most of the meeting and discussed Wall Street’s disconnect to the stock price, optimizing every day, new products, and Goldman Sachs’ suggestion to break up the company.

The Seattle Times also reported, in an 11/5/10 article, Ballmer is selling $2 billion of his Microsoft stock. This is about 18% of his holdings. Click here 

Compared to the other 30 present and past Microsoft executives’ homes in my book, Ballmer has a relatively modest estate. It is in Hunts Point and next door to Craig McCaw’s (formerly Kenny G’s) estate. The photograph above is from page 155 in my book, Lake Washington 130 Homes.