Michael Dell
   HOME

TheInfoList



OR:

Michael Saul Dell (born February 23, 1965) is an American billionaire businessman and philanthropist. He is the founder, chairman, and CEO of
Dell Technologies Dell Technologies Inc. is an American multinational technology company headquartered in Round Rock, Texas. It was formed as a result of the September 2016 merger of Dell and EMC Corporation (which later became Dell EMC). Dell's products incl ...
, one of the world's largest technology infrastructure companies. He is ranked the 24th richest person in the world by ''
Bloomberg Billionaires Index The ''Bloomberg Billionaires Index'', launched in March 2012, is a daily ranking of the world's 500 richest people based on their net worth. It draws information from "action in the stock market, economic indicators and news reports", features a p ...
'', with a net worth of $45 billion as of October 2022. In 2011, his 243.35 million shares of Dell stock were worth $3.5 billion, giving him 12% ownership of the company. His remaining wealth of roughly $10 billion is invested in other companies and is managed by
MSD Capital MSD Capital is an American private Investment company, investment firm that manages the capital of Michael Saul Dell, Michael Dell and his family. The firm, which is based in New York City, New York and has offices in Santa Monica and West Palm B ...
, which incorporates his initials. In January 2013 it was announced that he had bid to take Dell Inc. private for $24.4 billion in the biggest management buyout since the
Great Recession The Great Recession was a period of marked general decline, i.e. a recession, observed in national economies globally that occurred from late 2007 into 2009. The scale and timing of the recession varied from country to country (see map). At ...
. Dell Inc. officially went private in October 2013. The company once again went public in December 2018.


Early life and education

Dell was born in 1965 in
Houston Houston (; ) is the most populous city in Texas, the most populous city in the Southern United States, the fourth-most populous city in the United States, and the sixth-most populous city in North America, with a population of 2,304,580 in ...
, to a Jewish family. His parents were Lorraine Charlotte (née Langfan), a
stockbroker A stockbroker is a regulated broker, broker-dealer, or registered investment adviser (in the United States) who may provide financial advisory and investment management services and execute transactions such as the purchase or sale of stocks an ...
, and Alexander Dell, an
orthodontist Orthodontics is a dentistry specialty that addresses the diagnosis, prevention, management, and correction of mal-positioned teeth and jaws, and misaligned bite patterns. It may also address the modification of facial growth, known as dentofacial ...
. Michael Dell attended Herod Elementary School in Houston. He would go on to attend Memorial High School. In a bid to enter business early, he applied to take a high school equivalency exam at age eight. In his early teens, he invested his earnings from part-time jobs in
stock In finance, stock (also capital stock) consists of all the shares by which ownership of a corporation or company is divided.Longman Business English Dictionary: "stock - ''especially AmE'' one of the shares into which ownership of a company ...
s and
precious metal Precious metals are rare, naturally occurring metallic chemical elements of high economic value. Chemically, the precious metals tend to be less reactive than most elements (see noble metal). They are usually ductile and have a high lustre. ...
s. Dell purchased his first
calculator An electronic calculator is typically a portable electronic device used to perform calculations, ranging from basic arithmetic to complex mathematics. The first solid-state electronic calculator was created in the early 1960s. Pocket-sized ...
at age seven and encountered an early
teletype A teleprinter (teletypewriter, teletype or TTY) is an electromechanical device that can be used to send and receive typed messages through various communications channels, in both point-to-point and point-to-multipoint configurations. Initia ...
terminal in junior high. At age 15, after playing with computers at
Radio Shack RadioShack, formerly RadioShack Corporation, is an American retailer founded in 1921. At its peak in 1999, RadioShack operated over 8,000 worldwide stores named RadioShack or Tandy Electronics in the United States, Mexico, United Kingdom, Austra ...
, he got his first computer, an
Apple II The Apple II (stylized as ) is an 8-bit home computer and one of the world's first highly successful mass-produced microcomputer products. It was designed primarily by Steve Wozniak; Jerry Manock developed the design of Apple II's foam-m ...
, which he promptly disassembled to see how it worked. Dell attended Memorial High School in Houston, selling subscriptions to the ''
Houston Post The ''Houston Post'' was a newspaper that had its headquarters in Houston, Texas, United States. In 1995, the newspaper shut down, and its assets were purchased by the '' Houston Chronicle''. History Gail Borden Johnson founded the ''Houston ...
'' in the summer. Dell's parents wanted him to be a doctor and in order to please them, he took up
pre-med Pre-medical (often referred to as pre-med) is an educational track that undergraduate students in the United States pursue prior to becoming medical students. It involves activities that prepare a student for medical school, such as pre-med course ...
at the
University of Texas The University of Texas at Austin (UT Austin, UT, or Texas) is a public research university in Austin, Texas. It was founded in 1883 and is the oldest institution in the University of Texas System. With 40,916 undergraduate students, 11,075 ...
in 1983. Dell continued learning to target specific populations for newspaper subscriptions rather than just making cold calls, and earned $18,000 that summer. He hired several employees, and after earning a gross profit of nearly $200,000 in his first year of business, Dell dropped out of the University of Texas at age 19.


Business career

While a freshman pre-med student at the
University of Texas The University of Texas at Austin (UT Austin, UT, or Texas) is a public research university in Austin, Texas. It was founded in 1883 and is the oldest institution in the University of Texas System. With 40,916 undergraduate students, 11,075 ...
, Dell started an informal business putting together and selling upgrade kits for personal computers in Room 2713 of the
Dobie Center Dobie Center, named after J. Frank Dobie, is a formerly privately-owned 27-story residence hall located on the University of Texas at Austin campus. On October 12, 2021, the University of Texas announced it was purchasing the center to provide ...
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. 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 A condominium (or condo for short) is an ownership structure whereby a building is divided into several units that are each separately owned, surrounded by common areas that are jointly owned. The term can be applied to the building or complex ...
, the business sold between $50,000 and $80,000 worth of PC upgrades, kits, and add-on components. In May, Dell incorporated the company as "Dell Computer Corporation" and relocated to a business center in North Austin. The company employed a few people as order takers, a few more to fill the orders, and, as Dell recalled, a manufacturing staff consisting of "three guys with screwdrivers sitting at six-foot tables". The venture's
capitalization cost Capital costs are fixed, one-time expenses incurred on the purchase of land, buildings, construction, and equipment used in the production of goods or in the rendering of services. In other words, it is the total cost needed to bring a project to a ...
was $1,000. In 1992, aged 27, he became the youngest CEO of a company ranked in ''
Fortune Fortune may refer to: General * Fortuna or Fortune, the Roman goddess of luck * Luck * Wealth * Fortune, a prediction made in fortune-telling * Fortune, in a fortune cookie Arts and entertainment Film and television * ''The Fortune'' (1931 film) ...
'' magazine's list of the top 500 corporations. 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. In the first quarter of 2001, Dell Inc. reached a world market share of 12.8 percent, surpassing
Compaq Compaq Computer Corporation (sometimes abbreviated to CQ prior to a 2007 rebranding) was an American information technology company founded in 1982 that developed, sold, and supported computers and related products and services. Compaq produced ...
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. 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. On March 4, 2004, Dell stepped down as CEO, but stayed as chairman of Dell Inc.'s board, while
Kevin Rollins Kevin Barney Rollins (born November 15, 1952) is an American businessman and philanthropist. The former President and CEO of Dell Inc., in 2006 Rollins was named by London's ''CBR'' as the 9th Most Influential person in the Enterprise IT sector. ...
, then president and
COO COO or coo may refer to: Business * Certificate of origin, used in international trade * Chief operating officer or chief operations officer, high-ranking corporate official * Concept of operations, used in Systems Engineering Management Process ...
, became president and CEO. On January 31, 2007, Dell returned as CEO at the request of the board, succeeding Rollins. In 2013, Michael Dell with the help of
Silver Lake Partners Silver Lake is an American global private equity firm focused on investments in technology, technology-enabled and related industries. Founded in 1999, the firm is one of the largest technology investors in the world. Its investment holdings have ...
, Microsoft, and a consortium of lenders took Dell, Inc. private. The deal was reportedly worth $25 billion and faced difficulties during its execution. Notable resistance came from
Carl Icahn Carl Celian Icahn (; born February 16, 1936) is an American financier. He is the founder and controlling shareholder of Icahn Enterprises, a public company and diversified conglomerate holding company based in Sunny Isles Beach. Icahn takes la ...
, but after several months he stepped aside. Michael Dell received a 75% stake in the private company. On October 12, 2015, Dell Inc. announced its intent to acquire the enterprise software and storage company
EMC Corporation Dell EMC (EMC Corporation until 2016) is an American multinational corporation headquartered in Hopkinton, Massachusetts and Round Rock, Texas, United States. Dell EMC sells data storage, information security, virtualization, analytics, cloud ...
. At $67 billion, it has been labeled the "highest-valued tech acquisition in history". The acquisition was finalized September 7, 2016.


Penalty

In July 2010 Dell Inc. agreed to pay a $100 million penalty to settle SEC charges of disclosure and accounting fraud in relation to undisclosed payments from
Intel Corporation Intel Corporation is an American multinational corporation and technology company headquartered in Santa Clara, California. It is the world's largest semiconductor chip manufacturer by revenue, and is one of the developers of the x86 series ...
. Michael Dell and former CEO Kevin Rollins agreed to pay $4 million each and former CFO James Schneider agreed to pay $3 million to settle the charges.


Accolades

Accolades for Dell include "Entrepreneur of the Year" (at age 24) from '' Inc.'' magazine; "Top CEO in American Business" from '' Worth'' magazine; "CEO of the Year" from ''
Financial World ''Financial World'' was an American magazine for investors from 1902 to 1998. It was originally issued weekly, and later every two weeks. In the magazine's later years of publication, its signature issue was the "Sports Franchise Valuation Issue". ...
'', '' Industry Week'' and ''
Chief Executive A chief executive officer (CEO), also known as a central executive officer (CEO), chief administrator officer (CAO) or just chief executive (CE), is one of a number of corporate executives charged with the management of an organization especially ...
'' magazines. Dell also received the 1998 Golden Plate Award of the
American Academy of Achievement The American Academy of Achievement, colloquially known as the Academy of Achievement, is a non-profit educational organization that recognizes some of the highest achieving individuals in diverse fields and gives them the opportunity to meet o ...
and the 2013
Franklin Institute The Franklin Institute is a science museum and the center of science education and research in Philadelphia, Pennsylvania. It is named after the American scientist and statesman Benjamin Franklin. It houses the Benjamin Franklin National Memori ...
's Bower Award for Business Leadership.


Affiliations

Dell serves on the Foundation Board of the
World Economic Forum The World Economic Forum (WEF) is an international non-governmental and lobbying organisation based in Cologny, canton of Geneva, Switzerland. It was founded on 24 January 1971 by German engineer and economist Klaus Schwab. The foundation, ...
, the executive committee of the International Business Council, the U.S. Business Council. He previously served as a member of the U.S.
President's Council of Advisors on Science and Technology The President's Council of Advisors on Science and Technology (PCAST) is a council, chartered (or re-chartered) in each administration with a broad mandate to advise the president of the United States on science and technology. The current PCAST w ...
. In April 2020, Governor
Greg Abbott Gregory Wayne Abbott (born November 13, 1957) is an American politician, attorney, and former jurist serving as the 48th governor of Texas since 2015. A member of the Republican Party (United States), Republican Party, he served as the 50th Tex ...
named Dell to the Strike Force to Open Texas – a group "tasked with finding safe and effective ways to slowly reopen the state" during the
COVID-19 pandemic The COVID-19 pandemic, also known as the coronavirus pandemic, is an ongoing global pandemic of coronavirus disease 2019 (COVID-19) caused by severe acute respiratory syndrome coronavirus 2 (SARS-CoV-2). The novel virus was first identif ...
. He also serves as an advisor on the COVID-19 Technology Task Force, a technology industry coalition founded in March 2020 collaborating on solutions to respond to and recover from the
COVID-19 pandemic The COVID-19 pandemic, also known as the coronavirus pandemic, is an ongoing global pandemic of coronavirus disease 2019 (COVID-19) caused by severe acute respiratory syndrome coronavirus 2 (SARS-CoV-2). The novel virus was first identif ...
.


Writings

Dell's 1999 book, ''Direct from Dell: Strategies That Revolutionized an Industry'' (by
HarperBusiness HarperCollins Publishers LLC is one of the Big Five English-language publishing companies, alongside Penguin Random House, Simon & Schuster, Hachette, and Macmillan. The company is headquartered in New York City and is a subsidiary of News Corp ...
), 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. Dell's second book, ''Play Nice But Win: A CEO's Journey from Founder to Leader'' (by Portfolio), is a story of inside battles that defined him as a leader. The book was written in collaboration with
James Kaplan James C. Kaplan, Jr. (born September 10, 1951) is an American novelist, journalist, and biographer. Biography He was born in New York City and grew up in rural Pennsylvania and suburban New Jersey. He matriculated at New York University and grad ...
.


Wealth

''
Forbes ''Forbes'' () is an American business magazine owned by Integrated Whale Media Investments and the Forbes family. Published eight times a year, it features articles on finance, industry, investing, and marketing topics. ''Forbes'' also re ...
'' estimated Dell's net worth at $50.4 billion . In February 2018, it was reported that in 2014, Dell had paid $100.5 million for Manhattan's
One57 One57, formerly known as Carnegie 57, is a 75-story, supertall skyscraper at 157 West 57th Street between Sixth and Seventh Avenues in the Midtown neighborhood of Manhattan in New York City. The building has 92 condominium units on top of ...
penthouse, which was then a record for the most expensive home ever sold in the city.


Personal life

Dell married Susan Lieberman on October 28, 1989, in
Austin, Texas Austin is the capital city of the U.S. state of Texas, as well as the county seat, seat and largest city of Travis County, Texas, Travis County, with portions extending into Hays County, Texas, Hays and Williamson County, Texas, Williamson co ...
; the couple reside there with their four children.


Philanthropy

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. In 2006, the foundation provided $50 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 to complement the Dell Children's Medical Center, as well as funding for a new computer science building at the University of Texas at Austin campus. In 2013, the foundation provided an additional $50 million commitment to establish the Dell Medical School at the University of Texas at Austin. Since 1999, the MSDF has committed $1.23 billion to non-profits and social enterprises in the United States, India and South Africa. Dell is also behind the founding of the Dell Jewish Community Campus in the Northwest Hills neighborhood of Austin. By 2011, the foundation had committed more than $650 million to children's issues and community initiatives in the
United States The United States of America (U.S.A. or USA), commonly known as the United States (U.S. or US) or America, is a country primarily located in North America. It consists of 50 states, a federal district, five major unincorporated territorie ...
,
India India, officially the Republic of India (Hindi: ), is a country in South Asia. It is the seventh-largest country by area, the second-most populous country, and the most populous democracy in the world. Bounded by the Indian Ocean on the so ...
and
South Africa South Africa, officially the Republic of South Africa (RSA), is the southernmost country in Africa. It is bounded to the south by of coastline that stretch along the South Atlantic and Indian Oceans; to the north by the neighbouring countri ...
. Today the foundation has over $466 million assets under management. In 2002, Dell received an honorary doctorate in
Economic Science Economics () is the social science that studies the production, distribution, and consumption of goods and services. Economics focuses on the behaviour and interactions of economic agents and how economies work. Microeconomics analyze ...
from the
University of Limerick The University of Limerick (UL) ( ga, Ollscoil Luimnigh) is a Public university, public research university institution in Limerick, Republic of Ireland, Ireland. Founded in 1972 as the National Institute for Higher Education, Limerick, it beca ...
in honor of his investment in
Ireland Ireland ( ; ga, Éire ; Ulster Scots dialect, Ulster-Scots: ) is an island in the Atlantic Ocean, North Atlantic Ocean, in Northwestern Europe, north-western Europe. It is separated from Great Britain to its east by the North Channel (Grea ...
and the local community and for his support for educational initiatives. In 2012, the Michael and Susan Dell Foundation committed $50 million for medical education. The
Dell Medical School The Dell Medical School is the graduate medical school of The University of Texas at Austin in Austin, Texas. The school opened to the inaugural class of 50 students in the summer of 2016 as the newest of 18 colleges and schools on the UT Austin ...
began enrolling students in 2016. In 2014, he donated $1.8 million to the
Friends of the Israel Defense Forces Friends of the Israel Defense Forces (FIDF) (in he, ארגון ידידי צה״ל בארה״ב) is an organization established in 1981 dedicated to the men and women serving in the Israel Defense Forces (IDF), wounded veterans, and the familie ...
. In 2017, in the wake of
Hurricane Harvey Hurricane Harvey was a devastating Category 4 hurricane that made landfall on Texas and Louisiana in August 2017, causing catastrophic flooding and more than 100 deaths. It is tied with 2005's Hurricane Katrina as the costliest t ...
, Dell, a Houston native, pledged $36 million to relief efforts. In May 2017, Dell donated $1 billion to his foundation, which focuses on child poverty; it makes both impact investments and charitable donations. In 2018, Dell Technologies returned to public markets through a complicated financial restructuring.


References


Further reading

* * Koehn, Nancy F. ''Brand New: How Entrepreneurs Earned Consumers' Trust from Wedgwood to Dell'' (2001) pp 257–306. * Magretta, Joan. "The power of virtual integration: An interview with Dell Computer's Michael Dell." ''Harvard Business Review'' (1998): pp-73+
online


External links

* * {{DEFAULTSORT:Dell, Michael American chief executives of manufacturing companies American computer businesspeople Dell people 1965 births Living people 20th-century American businesspeople 21st-century American businesspeople American billionaires American business writers American commodities traders American financiers American investors American nonprofit businesspeople American political fundraisers American real estate businesspeople American stock traders American technology chief executives American technology company founders American technology writers Businesspeople from Texas Jewish American philanthropists Jewish American writers Private equity and venture capital investors Texas Republicans University of Texas at Austin alumni Writers from Texas American people of German-Jewish descent Memorial High School (Hedwig Village, Texas) alumni 21st-century American Jews