Microsoft investigated Gates' earlier 'affair' with employee

WASHINGTON • Microsoft conducted an investigation into its co-founder Bill Gates's involvement with an employee almost two decades ago after it was informed in 2019 of his attempt to start a romantic relationship with that person.

The board reviewed the matter and held a "thorough investigation" with the help of an external law firm, the software giant said on Sunday. It did not reach a conclusion to the probe because Mr Gates had stepped down before it was completed, Microsoft said.

"Microsoft received a concern in the latter half of 2019 that Bill Gates sought to initiate an intimate relationship with a company employee in the year 2000," Microsoft said in a statement.

"A committee of the board reviewed the concern, aided by an outside law firm, to conduct a thorough investigation. Throughout the investigation, Microsoft provided extensive support to the employee who raised the concern."

Dow Jones earlier reported that Microsoft's directors found Mr Gates' involvement with the female employee to be inappropriate and decided last year that he had to step down from the board, citing people familiar with the matter who were not identified.

Microsoft did not provide further details on the investigation.

The billionaire said in March last year that he was stepping down from the board to devote more time to philanthropy. Mr Gates has not been active in a day-to-day role since 2008, Microsoft said at that time.

Mr Gates co-founded the software company in 1975 and served as its chief executive until 2000, the same year his foundation was started, and was chairman until February 2014.

A spokesman for Mr Gates said his decision to leave the board had nothing to do with the romantic involvement with an employee.

"There was an affair almost 20 years ago which ended amicably," she said, adding that his "decision to transition off the board was in no way related to this matter".

The belated investigation into the affair came at a time that was marked by a groundswell of discussion at Microsoft about the treatment of women and Me-Too conversations in the broader tech industry.

Since 2000, Microsoft has also put in place processes for investigating allegations and overhauled them with the goal of making them stronger, the company said.

Intel chief executive Brian Krzanich resigned after the board was informed that he had had a consensual relationship with a subordinate, even though that relationship had ended years before and predated his appointment to the top job at the company.

The board conducted investigations internally and via external counsel to confirm the violation of the company's policies and made the announcement in June 2018.

Mr Gates and Ms Melinda French Gates announced their divorce earlier this month after 27 years of marriage. Several reports, including those that emerged over the weekend, said she had earlier raised concerns over his dealings with convicted sex offender Jeffrey Epstein.

The New York Times reported in 2019 that Mr Gates had met Epstein several times, and once stayed late at his New York townhouse. Epstein died in jail two months prior to the report, while awaiting trial on federal charges related to sex trafficking.

Mr Gates' spokesman denied the reports.

The "characterisation of his meetings with Epstein and others about philanthropy is inaccurate", she said, adding: "The rumours and speculation surrounding Gates' divorce are becoming increasingly absurd."

BLOOMBERG