Alan Mulally, CEO of Ford Motor, wves to reporters during a press conference earlier this month(Photo: Vincent Yu AP)
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Microsoft shares have rising on news reports that the technology giant is closing in on finding a new CEO, with Ford's Alan Mulally considered a top-five candidate.
On Thursday, Microsoft closed at $37.50, down 68 cents a share or 1.8%. But it's up from about $33 earlier this month, and climbed slightly from last week.
Part of the reason is because the CEO change is in the air. One influential analyst is throwing his predictive weight behind the affable Mulally to replace retiring CEO Steve Ballmer.
"We think it likely that Ford Motor CEO Alan Mulally is Microsoft's top pick based on the merits of his candidacy and will be named Microsoft's new CEO in a month or so," writes Nomura Equity Research's Rick Sherlund in a note to investors Wednesday.
Before coming to Ford in 2006, Mulally ran Boeing's commercial aircraft business from Seattle, near Microsoft's headquarters.
Why so sure about Mulally? Sherlund lays out his case:
•Non-denial denials. Mulally's "non-denial denials regarding his interest in the position," starting with a USA TODAY interview recently, "are in contrast to outright comments from some of the other candidates that have been approached that have stated flatly and unambiguously that they are not interested."
After repeatedly dishing out how he plans to stay with Ford and retire next year, he refused recently to say whether he is in talks with Microsoft.
•No contract? Ford's board of directors acknowledges they don't have a formal contract with Mulally, and his successor, Mark Fields, has already been chosen.
•Advisor to Microsoft. Mulally reportedly advised retiring Microsoft CEO Steve Ballmer on a reorganization that would likely be shaped around the one he undertook at Ford. Called "One Ford," it pulled together previously independently operating groups around the world into a more unified organization with common products.
If not Mulally, Sherlund says look for other top candidates to include Boeing CEO James McNerney, Jr. or Tyco Chairman and ex-Motorola COO Edward Breen. He doesn't think the next CEO will come from within Microsoft.
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