In Microsoft’s World, Eight Finance Chiefs Are Enough
Microsoft Corp. still lacks a president, but it now has eight chief financial officers.
The Redmond, Wash.-based software company in recent weeks has finished naming a finance chief for each of its seven business units. The executives will report to the heads of the business units.
John Connors, Microsoft’s chief financial officer since 2000, remains the corporation-wide finance chief and will work with each of the business unit finance executives.
The chief financial officers will mean better accountability for each business unit’s performance, Microsoft spokesman Kent Hollenbeck said. Investors will see more clearly how each unit is faring, he added.
Microsoft had indicated it would name people to such posts about a year ago when it started breaking out the results of its units, Hollenbeck said.
Although many of the executives have been around for months, Microsoft now may be trying to give them a higher profile, said Matt Rosoff, an analyst with Kirkland, Wash.-based Directions on Microsoft, an independent research firm that focuses on the company.
“Microsoft is under some [investor] pressure to improve the numbers,” he said, including its Xbox video game business. “Maybe they’re giving these people a little more public airtime.”
Microsoft began splitting operations into seven units in late 2001 under a reorganization by Chief Executive Steve Ballmer.
Microsoft’s seven business units are: Client, which includes the Windows operating system; Information Worker, including Office business software; Server Platforms; Home and Entertainment, including Xbox video-game consoles; MSN Internet service; Business Solutions; and CE/Mobility, including software for wireless devices. The Client, Information Worker and Server Platforms units are profitable. The rest are collectively losing billions of dollars a year.
Meanwhile, the post of president has been vacant since April 2002, when Richard Belluzzo resigned. Microsoft spokeswoman Stacy Drake declined to comment on whether the company had plans to hire a president.
Microsoft shares rose 7 cents in Nasdaq trading to $26.45.
