Amid increasing rumors of Ford Motor Co.’s (F - Analyst Report) CEO Alan Mulally replacing Microsoft Corporation’s (MSFT - Analyst Report) CEO Steve Ballmer, the board of directors of Ford has decided to compel Mulally to make a clarification regarding his intentions soon, according to Reuters.
Although Mulally had earlier declared that he intends to stay with the automaker till the end of 2014, it is being rumored that he will change his plans once he receives an offer from Microsoft.
The continuous speculations are overshadowing the media coverage of Ford’s business operations such as the recent launch of the new Mustang. This is not going down well with some board members, who are seeking a clarification of the issue.
Apparently the board will talk about this matter in today’s meeting and discuss it with Mulally by next week. While the CEO is a part of the board, his presence at the board meeting is not confirmed. In case Mulally steps down as Ford’s CEO, he is likely to be succeeded by Chief Operating Officer Mark Fields.
68-year old Mulally has been Ford’s president and CEO since Sep 5, 2006. He has helped the automaker counter recessionary impacts, avoid bankruptcy and eventually generate higher profits. Prior to Ford, Mulally was a part of The Boeing Company (BA - Analyst Report).
According to Reuters, Mulally has the backing of several important investors of Microsoft, who are surreptitiously campaigning for him. However, former Nokia Corporation (NOK - Analyst Report) CEO Stephen Elop is also said to be in the running for the position of Microsoft CEO. Microsoft Chief Operating Officer Kevin Turner, as well as executives Satya Nadella and Tony Bates are other possible candidates.
Ford currently carries a Zacks Rank #2 (Buy).