Saturday, 24 August 2013
Microsoft has stepped into a new and uncertain era with the announcement that CEO Steve Ballmer will retire within 12 months, triggering a search for a successor to take over the software behemoth.
Microsoft is a company struggling to be reborn, but its new trajectory is something Ballmer steered. Were mistakes made under his tenure? Certainly. But that doesn’t mean Ballmer isn’t leaving on a high note. In fact, his exit is classy: He stuck around longer than few others would have, and the concluding years of his tenure as CEO have been his best.
The announcement on Friday surprised analysts and investors and sent shares surging, reflecting belief that the company will benefit from new leadership as it tries to innovate and chase the market for smartphones and tablets.
"There is never a perfect time for this type of transition, but now is the right time," Ballmer said in a statement.
The company needed a leader who could see through its reorganisation and new strategy, he added. "My original thoughts on timing would have had my retirement happen in the middle of our company's transformation to a devices and services company. We need a CEO who will be here longer term for this new direction.".
The board of directors has appointed a special committee to find a successor. Microsoft said Gates would be part of the committee that would select the next CEO. This committee is chaired by John Thompson, the board's lead independent director. The committee is working with Heidrick & Struggles International Inc, an executive recruiting firm, and will consider both external and internal candidates.
"The board is committed to the effective transformation of Microsoft to a successful devices and services company," Thompson said.
"As a member of the succession planning committee, I'll work closely with the other members of the board to identify a great new CEO," said Gates.
