Michael Dell |

Michael Dell, founder, chairman and CEO of Dell
|
Born | Michael Saul Dell February 23, 1965 (age 50) Houston, Texas, U.S. |
Residence | Texas, U.S. |
Nationality | American |
Alma mater | University of Texas at Austin(dropped out) |
Occupation | Founder, Chairman and CEO ofDell |
Net worth | US$ 18.7 billion (March 2015)[1] |
Spouse(s) | Susan Lynn Lieberman (October 28, 1989–present; 4 children) |
Michael Saul Dell (born February 23, 1965) is an American
business magnate, investor, philanthropist, and author. He is the founder and CEO of
Dell Inc., one of the world’s leading sellers of
personal computers (PCs). He was ranked the 41st richest person in the world on 2012
Forbes list of billionaires, with a net worth of US$22.4 billion as of December 2014.
[1]
In 2011, his 243.35 million shares of Dell stock were worth $3.5 billion, giving him 12% ownership of the company.
[2] His remaining wealth of roughly $10 billion is invested in other companies and is managed by a firm whose name,
MSD Capital, incorporates Dell's initials.
[3] On January 5, 2013 it was announced that Michael Dell had bid to take Dell Inc. private for $24.4 billion in the biggest
leveraged buyout since the
Great Recession.
Dell purchased his first
calculator at age seven and encountered an early
teletype terminal in junior high. At age 15, after playing with computers at
Radio Shack, he got his first computer, an
Apple II, which he promptly disassembled to see how it worked.
[8] Dell attended
Memorial High School in Houston, selling subscriptions to the
Houston Post in the summer. While making
cold calls, he noted that the persons most likely to purchase subscriptions were those in the process of establishing permanent geographic and social presence; he then targeted this demographic group by collecting names from marriage and mortgage applications. Dell earned $18,000 that year, exceeding the annual income of his history and economics teacher.
[9]
Business career[edit]

A PC's Limited Turbo PC signed by Dell
While a freshman pre-med student at the
University of Texas, Dell started an informal business putting together and selling upgrade kits for personal computers
[10] in Room 2713 of the
Dobie Center residential building. He then applied for a vendor license to bid on contracts for the State of Texas, winning bids by not having the overhead of a computer store.
[11][12][13]
In January 1984, Dell banked on his conviction that the potential cost savings of a
manufacturer selling PCs directly had enormous advantages over the conventional indirect retail channel. In January 1984, Dell registered his company as "PC's Limited". Operating out of a
condominium, the business sold between $50,000 and $80,000 in upgraded PCs, kits, and add-on components. In May, Dell incorporated the company as "Dell Computer Corporation" and relocated it to a business center in North Austin. The company employed a few order takers, a few more people to fulfill them, and, as Dell recalled, a manufacturing staff "consisting of three guys with screwdrivers sitting at six-foot tables". The venture's
capitalization cost was $1,000.
[14][15]
In 1992, aged 27, he became the youngest CEO of a company ranked in
Fortune magazine's list of the top 500 corporations.
[16] In 1996, Dell started selling computers over the Web, the same year his company launched its first
servers. Dell Inc. soon reported about $1 million in sales per day from dell.com.
[17] In the first quarter of 2001, Dell Inc. reached a world market share of 12.8 percent, passing
Compaq to become the world's largest PC maker. The metric marked the first time the rankings had shifted over the previous seven years. The company's combined shipments of desktops, notebooks and servers grew 34.3 percent worldwide and 30.7 percent in the United States at a time when competitors' sales were shrinking.
[18]
In 1998, Dell founded MSD Capital L.P. to manage his family's investments. Investment activities include publicly traded securities, private equity activities, and real estate. The firm employs 80 people and has offices in New York, Santa Monica and London. Dell himself is not involved in day-to-day operations.
[19] On March 4, 2004, Dell stepped down as CEO, but stayed as chairman of Dell Inc.'s board, while
Kevin Rollins, then president and
COO, became president and CEO. On January 31, 2007, Dell returned as CEO at the request of the board, succeeding Rollins.
[20]
Penalty[edit]
In July 2010 Dell Inc. agreed to pay a $100 million penalty to settle SEC charges
[21] of disclosure and accounting fraud in relation to undisclosed payments from
Intel Corporation. Michael Dell and former CEO Kevin Rollins agreed to pay $4 million each, former CFO James Schneider to pay $3 million to settle the charges.
[21]
Accolades[edit]
Affiliations[edit]
Dell serves on the Foundation Board of the
World Economic Forum, the executive committee of the International Business Council, the U.S. Business Council, and the governing board of the
Indian School of Business in
Hyderabad, India. He previously served as a member of the U.S. President's Council of Advisors on Science and Technology.
[24]
Writings[edit]
Dell's 1999 book,
Direct from Dell: Strategies That Revolutionized an Industry, is an account of his early life, his company's founding, growth and missteps, as well as lessons learned. The book was written in collaboration with Catherine Fredman.
[25]
Wealth and personal life[edit]
In February 2012,
Forbes estimated Dell's net worth at $15.9 billion.
[1] Dell married Susan Lynn Lieberman on October 28, 1989 in
Austin, Texas; the couple reside there with their four children.
[26][27][28]
Philanthropy[edit]
In 1999, Michael and Susan Dell established the
Michael and Susan Dell Foundation, which focuses on, among other causes, grants, urban education, childhood health and family economic stability. The foundation has provided $65 million in grants to three health-related organizations associated with the University of Texas: the Michael & Susan Dell Center for Advancement of Healthy Living, the Dell Pediatric Research Institute, and the Dell Children's Medical Center, as well as funding for a new computer science building at the
University of Texas at Austin campus.
[29][30]
By 2010, the foundation had committed more than $650 million to children's issues and community initiatives in the
United States,
India and
South Africa[31] Today the foundation has over $466 million assets under management.
[32]
In 2012, the Michael and Susan Dell Foundation committed $50 million for medical education. The Dell School of Medicine at the University of Texas at Austin will begin enrolling students in 2016.
Criticism
In the April 2011 issue of
Mother Jones, a timeline of Michael Dell's life is detailed in "American Magnate: Michael Dell: How a homegrown geek outsourced, downsized, and tax-breaked his way to the top." The article juxtaposes Dell's spending on luxurious homes and private jet travel with his pursuit of
tax breaks and
tax holidays and
Dell Computer's eventual
offshoring of jobs overseas after receiving the incentives for setting up shop locally.