To whom much is given, much is expected.  These words exemplify the reign of Steve Ballmer who took over one of the finest companies in the world at its peak.  Over the last decade, Microsoft has more than doubled its earnings, but this was largely due to its entrenched Windows and Office franchises.  Ballmer allowed Microsoft (MSFT) to get passed over by Google (GOOG) and Apple (AAPL) in terms of innovation, and the company is drastically behind its competition in mobile and devices.  Furthermore, Ballmer’s capital allocation has been beyond terrible.  From the horrible aQuantive acquisition to the recent Nokia handset business purchase, Ballmer has destroyed tens of billions of shareholder capital.  I believe that Alan Mulally of Ford or Sam Palmisano, formerly of IBM, would be the two best candidates to take the position.  Microsoft must make some painful decisions such as reducing its reliance on the Windows platform, and focusing on maximizing distribution of the powerful Office franchise.  The Nokia acquisition is likely to be disastrous and was a painful parting blow to Microsoft shareholders’.

 

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