At least 7 people who allegedly witnessed workplace misconduct of Bill Gates’ money manager were paid settlements, NYT reports

Michael Larson wearing a hot pink polo and a jacket
Michael Larson, business manager for Cascade Investment LLC, attends the Allen & Company Sun Valley Conference on July 10, 2014 in Sun Valley, Idaho.

  • Bill Gates’ money manager Michael Larson was accused of making racist, sexist remarks to employees, The New York Times reported.
  • Cascade Investment paid settlements to at least seven people who witnessed Larson’s behavior, The Times reported.
  • Larson denied “some but not all” of the allegations of misconduct detailed in The Times report.
  • See more stories on Insider’s business page.

An investment firm paid at least seven settlements to people who are alleged to have witnessed workplace misconduct by Bill Gates’ money manager Michael Larson, The New York Times reported Wednesday.

The Times published a bombshell report Wednesday detailing Larson’s alleged inappropriate workplace behavior at Cascade Investment, which manages Bill Gates’ and Melinda French Gates’ fortune. Bill and Melinda Gates announced on May 3 that they are splitting after 27 years of marriage.

Larson, who has worked as Gates’ money manager for nearly three decades through Cascade, made sexual and racist comments, 10 former employees and others familiar with the firm told The Times.

Cascade paid settlements to at least seven people who witnessed or were familiar with Larson’s behavior to keep quiet about their time at the firm, The Times reported.

At least six employees had told Gates – several of whom also approached his wife, Melinda French Gates – to complain about Larson’s misconduct, according to The Times report.

According to the report, Larson would judge female coworkers based on their attractiveness to other male employees and showed pictures of nude women to coworkers and compare the photos to a female human resources executive. He also called employees “stupid” and would call their work “garbage,” sources told The Times.

In one instance, sources told The Times that Larson made a racist comment to former employee Stacy Ybarra, who is Black. When she informed Larson that she had voted, Larson said in response: “But you live in the ghetto, and everybody knows that Black people don’t vote,” three sources described to The Times.

Larson denied making the remark in a statement to The Times, as well as “some but not all” of the other allegations of misconduct.

“Years ago, earlier in my career, I used harsh language that I would not use today,” Larson said in a statement to The Times. “I regret this greatly but have done a lot of work to change.”

Representatives for Larson and Cascade Investments did not immediately respond to Insider’s request for comment.

A spokesperson for the Gates Foundation told Insider in a statement: “BMGI is a professionally run organization with oversight and governance, including regularly occurring HR reviews that have taken place for over 20 years. BMGI does not tolerate inappropriate behavior.”

“There’s a clear process for employees, contractors and partners to share concerns – either anonymously or by name, and any issue raised over the company’s history has been taken seriously and resolved appropriately,” the spokesperson continued.

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Bill Gates’ money manager reportedly told a Black employee she lived ‘in the ghetto,’ made sexual comments about female colleagues, and was accused of exposing himself to a bike-shop manager

bill and melinda gates
A source told The New York Times that Melinda Gates’ body language during events hinted that she was unhappy. The soon-to-be-ex couple are seen during a TED conference in 2014.

  • Michael Larson, the Gates’ money manager, made racist and sexual comments, according to a NYT report.
  • The report reveals new details about a previous sexual harassment allegation against Larson in 2017.
  • The new report follows other emerging details regarding Gates’ personal life following news of his divorce.
  • See more stories on Insider’s business page.

Bill Gates and Melinda French Gates’ money manager made racist and sexual comments about employees, according to a new report from The New York Times’ Anupreeta Das, Emily Flitter, and Nicholas Kulish.

Ten former employees of Cascade Investment told the outlet that money manager Michael Larson showed coworkers photos of naked women, publicly judged female colleagues based on their attractiveness in front of male employees, and fostered a “culture of fear” at the firm tasked with growing the Gates’ wealth.

The report comes as Gates’ carefully curated public image continues to unravel in the wake of his divorce from French Gates.

When a former employee, Stacy Ybarra, told Larson she planned to leave Cascade for another company, Larson shorted that company’s stock and told her he had done so to spite her, three people told The Times.

Sources told the outlet that Larson would also call employees “stupid” and dub their work to be “garbage.”

In a statement to the NYT, Larson said, “Years ago, earlier in my career, I used harsh language that I would not use today. I regret this greatly but have done a lot of work to change.”

Two sources told the Times that Larson also made a racist comment to Ybarra, who is Black. After she told him she had voted before coming to work on Election Day one November, Larson said “but you live in the ghetto, and everybody knows that Black people don’t vote,” according to the report.

Larson, who could not be reached by Insider, denied making the remark and “some but not all” of the allegations of misconduct, according to The Times. Insider also reached out to a spokesperson for Larson, Chris Giglio, for additional comment on the report.

“During his tenure, Mr. Larson has managed over 380 people, and there have been fewer than five complaints related to him in total,” a spokesperson for Larson told the Times.

“Any complaint was investigated and treated seriously and fully examined, and none merited Mr. Larson’s dismissal,” the spokesperson added, per the Times.

Cascade opened an internal investigation into the incident, and Gates and French Gates spoke to Ybarra as part of it, sources told The Times.

Larson also showed male colleagues pictures of naked women and compared them to the company’s HR executive, according to the report, and in another incident asked a female employee if she would strip if paid a certain amount. Larson denied the events took place to The Times.

The Times also reported Larson was accused of exposing himself to a woman who managed a bike shop that was majority-owned by a Cascade-backed company. The woman hired a lawyer in 2017 and wrote a letter to Gates and French Gates threatening to sue the couple if Larson’s alleged advances didn’t stop. He told her he wanted to have sex with her as well as another woman, according to a source who read the letter and spoke to the NYT.

Michael Larson wearing a hot pink polo and a jacket
Michael Larson, business manager for Cascade Investment LLC, attends the Allen & Company Sun Valley Conference on July 10, 2014 in Sun Valley, Idaho.

The NYT reported the sexual harassment allegation last week, but the Wednesday report sheds more light on the alleged incident.

Gates’ solution was to pay the manager in a settlement, while French Gates suggested conducting an external review of the matter and of the work culture at Cascade, sources told The Times in a previous report.

An investigation by a law firm concluded the accusation couldn’t be substantiated, and Larson returned to work at Cascade after a leave of absence. A spokesperson for Larson told the Times that Larson had “wanted to contest the allegations throughout the investigation.”

A Gates spokesperson did not immediately respond to Insider’s request for comment.

Cascade Investment was created to manage the Gates’ fortune as well as the Gates Foundation endowment. The Wall Street Journal published a profile on Larson in 2014, detailing how his job was to “make Bill Gates richer.”

Gates and French Gates announced they were ending their 27-year marriage on May 7.

In the weeks since the divorce announcement, questions have swirled regarding the couple’s massive $130 billion fortune, their continued efforts at the Bill and Melinda Gates Foundation, their children’s inheritance, and other factors regarding Gates’ personal conduct, such as an affair he had with a Microsoft staffer in 2000. A Gates spokesperson confirmed the affair and said it “ended amicably.”

Gates’ reported connections to convicted sex offender Jeffrey Epstein have also resurfaced since news of the divorce broke. Gates told The Journal in 2019 that he had indeed met the financier but did not have “any business relationship or friendship with him.”

Read the full report on The New York Times here.

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