Why Microsoft Corporation (NASDAQ:MSFT) CEO Selection Standoff May Usher In Mulally

Posted on Jan 6 2014 - 8:52am by Lisa Ray

Boston, MA 01/06/2013 (wallstreetpr) – The ongoing selection of the next Chief Executive of Microsoft Corporation (NASDAQ:MSFT) should have been completed in either November or December last year, and this delay is now causing anxiety among investors. It is important to look at the progress made so far, as to why the things are happening the way they are and what impact the new CEO would have on the stock.

Progress in CEO selection

Microsoft Corporation (NASDAQ:MSFT) is still pushing on with the selection of its next CEO to take over from Mr. Steve Ballmer, who announced retirement in August last year. There are very scant details about how far things have progressed. However, what is clear is that Ford Motor Company (NYSE:F)’s CEO Mr. Alan Mulally remains in the race, as former Nokia CEO Mr. Stephen Elop and some other insiders. No breakthrough is seen so far, in this exercise.

The challenge

According to a report carried by Wall Street Journal, there seems to be concerns among candidates vying for the CEO position, regarding the positions of the outgoing CEO Mr. Ballmer and former CEO and co-founder of the company Mr. Bill Gates. The report quotes sources familiar with the discussions in the panel mandated to select the next CEO, as saying that some candidates are not comfortable with the retention of both Mr. Gates and Mr. Ballmer in the board.

The two former CEOs are expected to get a position in the board. However, with regard to Mr. Ballmer in particular, whose most decisions and policies have been unpopular in investors during his stint at the helm, having him in the board may pose a challenge for the new CEO in breaking free from some of his policies.

The best fit

If this power-sharing arrangement which is causing headache for other CEO candidates doesn’t turn away Mr.Mulally, it would be the best thing to have happened to Microsoft Corporation (NASDAQ:MSFT) shareholders in recent times. This is not only because, Mr. Mulally is used to such power arrangement in the Ford Motor Company (NYSE:F)’s board, but also because many investors are actually banking on Mr. Mulally to turnaround the company. We can recall that whenever reports showed that Mr. Mulally was headed for the top position at Microsoft Corporation (NASDAQ:MSFT), the company’s stock often gain strength, a indication of the faith put on his leadership by the market players.

About the Author

Lisa has a Bachelor of Arts in journalism from Purdue University and 3 years of experience in the publishing field.

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