Microsoft share price: Ballmer could step down from MS board

Steve Ballmer, Microsoft Corp’s (NASDAQ:MSFT) outgoing CEO is planning to leave the board of directors of the world’s largest software maker, the latest tech rumours suggest. Citing unnamed sources, technology website Re/Code reported on Sunday that Ballmer would step down from the board once a suitable successor to the CEO post is found.

If Ballmer departs from the company entirely, this would mark an even bigger change at the company than previously anticipated, one that could potentially clear the way for an outsider to become the next – third ever – Microsoft CEO.

In Friday’s Nasdaq trading, Microsoft shares closed down 1.38 percent to $36.38.

Clearing the way?

In August, last year, Ballmer announced plans to retire as chief executive of Microsoft, shortly after launching the biggest reorganisation at the company in years. The revamp was designed to transform the Windows maker in a company focused on devices and services, but the announcement of Ballmer’s retirement meant that it was to be carried out to completion under a new CEO.

Since then, however, the software giant has struggled to find a successor. Reports in the media, have suggested that Microsoft has narrowed the list to a handful of candidates, including the company’s Executive Vice President Tony Bates and cloud-computing chief Satya Nadella, as well as several outside candidates.

The most recent addition to that list emerged last week, when media reports suggested that Ericsson AB Chief Executive Hans Vestberg was amongst the candidates under consideration for the post.

The list has become smaller as some of the candidates, considered to be among those with best chance for the job, have withdrawn from the race. For example, Ford’s CEO Alan Mulally earlier this month said that he wanted to end the Microsoft speculation because he had “no plans to do anything other than serve Ford.”

According to a Bloomberg report last week, some candidates have said no because of Ballmer and Microsoft’s co-founder Bill Gates. The newswire cited unnamed sources, “familiar with some of the candidates’ thinking”, as explaining that the presence of these two influential figures on the company’s board has raised concern that a new CEO might lack independence in the role.

In that sense, a potential departure of Ballmer from the board could be a move to reassure candidates that they would have enough control in the role of CEO. As an ‘outsider’, Ballmer would still have a four-percent stake in the company, but will not be directly involved in the board’s decisions.

However, according to the Re/Code report, Gates, who is Chairman and also owns about four percent of Microsoft, is likely to maintain a more active role within the company, depending on who is chosen as the new leader.