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UPDATE: Mullaly Out, MS goes to reserves

captureNow that Alan Mulalley has decided not to leave Ford, the  search for a new  Microsoft CEO is likely to drag on for at least another month. Despite what made sense for all here in Seattle , Alan Mulally, has decided not to leave Ford.   The reasons are not clear, however the most important according to  Mr. Mulally, who still drives a Lexus, is that he wants to see Lincoln amongst the Mercedes, Infinities, BMW and Lexus brands.

The Wall Street Journal, however, reports that  sources in Ford CEO Alan Mulally’s camp say that the reason that he decided to stay at Ford for at least another year was because he was worried about the influence that both Bill Gates and Steve Ballmer would have over his decision-making if they stayed on the board of directors.

Mulally’s comments reignited the guessing game over whether  Microsoft is able or wiling to compete with Apples in the fanboy/luxury market.

One source  familiar with Microsoft’s board’s discussions said Mulally’s  candidacy raised questions about “culture and leadership style.”  The Journal similarly reported late last week that other prospective Microsoft CEO candidates have expressed concerns about Gates and Ballmer staying on the board and were especially concerned about “several recent decisions” Ballmer made ”that have altered the company’s strategy and generated controversy among managers and investors.”

Sources familiar with the process have told TANews that Microsoft hopes to have a new CEO picked by next month at the earliest.  Microsoft is down to a “handful” of candidates, including one or  more outsiders from the tech industry, former Nokia   CEO Stephen Elop and insiders Satya Nadella and Tony Bates. None of these names are on the lists of the  prominent Microsoft investors who campaigned behind  the scenes for Mulally to succeed Ballmer.


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