Microsoft 'considering' Ericsson chief as Ballmer successor

But a number of other candidates still in the running as tech firm seeks new leader

Ericsson CEO Hans Vestberg during a news conference at Mobile World Congress at Barcelona. Microsoft is said to be considering Vestberg as a possible successor to outgoing CEO Steve Ballmer. Photograph: Albert Gea/Files/Reuters
Ericsson CEO Hans Vestberg during a news conference at Mobile World Congress at Barcelona. Microsoft is said to be considering Vestberg as a possible successor to outgoing CEO Steve Ballmer. Photograph: Albert Gea/Files/Reuters

Microsoft's board is considering Ericsson chief executive officer Hans Vestberg as a potential successor to departing leader Steve Ballmer, according to people briefed on the search.

Mr Vestberg (48) is in the running alongside other candidates, said the people, who asked not to be identified because the process is private.

Microsoft cloud-computing chief Satya Nadella and former Nokia CEO Stephen Elop, as well as other outsiders, are also on the list, people familiar with the search have said. The board hasn't yet reached a decision and who is under consideration is still subject to change.

Microsoft’s lead independent director John Thompson, who is heading the search, wrote in a December blog post that the board plans to complete a search in the “early part of 2014”. He said the board started with more than 100 candidates and has since narrowed the list.

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Mr Ballmer said last August that he planned to retire within a year.

“We never comment on rumours and speculation,” said Ola Rembe, a spokesman for Stockholm-based Ericsson, in response to questions about Mr Vestberg’s Microsoft candidacy. Peter Wootton, a spokesman for Microsoft, declined to comment or to make executives available.

The search has been dogged with difficulty. Any new CEO will have to turn around Microsoft, whose main software business is struggling. At the same time, the Washington-based company has made limited headway in fast-growing markets such as smartphones and tablets.

Mr Ballmer and Microsoft co-founder Bill Gates, who together hold about 8 per cent of the stock, are also on the board. Their presence has deterred some candidates, raising concern that a new CEO might lack independence in the role, said people familiar with some of the candidates' thinking.

Some CEO candidates have said no or dropped out of the running, people with knowledge of the search have said. Ford CEO Alan Mulally (68) who had been under consideration for the Microsoft job, said last week that he plans to stay at the carmaker. Mr Mulally’s candidacy for Microsoft CEO had faded amid questions about his age and lack of technology experience, people with knowledge of the search have said.

Other CEO candidates have included Microsoft executive vice president Tony Bates and chief operating officer Kevin Turner, people familiar with the matter have said. (Bloomberg)