Is Microsoft’s Play For Mulally Hurting Ford Motor Co.?

11/26/13 10:26AM EST

Is Microsofts Play For Mulally Hurting Ford Motor Co Is Microsoft’s Play For Mulally Hurting Ford Motor Co.?

Image via Flickr/ Julia Gabriel

Alan Mulally pulled of what could be called a miracle when he saved Ford Motor Co. (NYSE:F) from the recession that sucked other American motor companies under. Even now, Ford is still riding the tide of his hard work and dedication, and share price is more than 500 percent higher than it was five years ago.

This fact is part of what has made Mulally the legendary auto executive he is known to be, but the fact remains that he was well compensated for his actions. Ford paid him millions of dollars to pour himself into the company and he did just that, so neither party can claim they were cheated. However, he has successfully turned the company around, and in so doing, he has ended the need for him to even be there.

Microsoft’s Consideration Of Mulally

Microsoft Corporation (NASDAQ:MSFT) has been considering Mulally as a possible candidate for its CEO position for some time now. While this could prove to be a very good thing for both Mulally and for Microsoft, it has caused some serious issues for Ford.

With Mulally possibly leaving the company to work at the Redmond tech giant, the air of uncertainty has caused what Douglas McIntyre of 247Wallst.com calls a three-ring circus. With Mulally on the fence about whether or not he will stay at Ford, it is perhaps time that the board of directors took action to encourage him to leave.

Ford Has A Qualified Replacement

Ford can easily replace Mulally at the current time with Mark Fields. Fields is the COO and he has both the skills and experience necessary to lead the car company onward in the future. William Clay Ford Jr. (Bill) is the executive chairman of the board. He was once the CEO of the company and nearly ran it into the ground – a mistake he can avoid making a second time by simply placing Fields in the position.

Mulally’s Next Move

Microsoft could very well choose to make Mulally its next CEO. However, there are several other candidates for the position, and many of them are equally qualified to run the tech giant. Mulally is 68, and he has no experience with tech companies. These two factors could be negative influences on Microsoft’s decision.

Mulally has hinted that he will be leaving Ford next year, but that is too long to hold Ford’s future from coming to pass. While he was useful to Ford during the turnaround, he has outlived his usefulness and needs to seek another place to ply his trade.

Disclosure: Author represents that he has no position in any stocks mentioned at the time of this article’s submission.