Microsoft Corp's Chief Financial Officer John Connors said late Tuesday he would leave the world's largest software maker after 16 years to become a partner at a Seattle-area venture capital firm. Redmond, Washington-based Microsoft did not name a successor to Connors, 45, who in the past few years guided Microsoft to its first-ever dividend, ended employee stock options and orchestrated the biggest-ever cash payout by a US company.
"It's a very good time (to leave)," Connors told Reuters, adding that recent changes to Microsoft's financial structure and a strong group of internal candidates would help smooth the transition for his successor.
"It's really hard to know (the impact on Microsoft) until you know who the replacement is," said Charles Di Bona, AN analyst at Sanford C. Bernstein & Co.
"When you lose someone of his calibre, it's not a good thing," Di Bona added, although he said it was unlikely Connors was leaving the company because of poor earnings performance during the latest quarter.
Connors will be joining Ignition Partners LLC, a venture capital firm based in Bellevue, Washington, located between Seattle and Microsoft's Redmond headquarters.
Connors said he works more than 55 hours A week at Microsoft and wanted to spend more time being involved with Pacific Northwest companies, initiatives and projects, and to spend more time with his wife and four children.
His last major task at Microsoft would be to report the company's latest quarterly earnings on January 27 and help find a new CFO.
One possible replacement for Connors is Microsoft's corporate controller Scott Di Valerio, who came from the same position at Walt Disney Co to help implement Microsoft's new financial structure.
"We have some strong internal candidates," Connors said, adding that Chief Executive Steve Ballmer, Chairman Bill Gates and the board were also looking at outside candidates. After Connors took up the CFO post in 1999, Microsoft's annual sales almost doubled to nearly $37 billion in its latest fiscal year while cash on hand more than tripled to $64.4 billion.
Ignition, founded by former McCaw Cellular Communications and Microsoft executives, as well as the former CEO of AT&T Wireless, invests in technology companies and recently closed its third fund of $300 million.
According to the latest regulatory filing, Connors owns nearly $8 million in Microsoft stock, though his net worth would presumably be higher from past stock sales and other investments.
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