UPDATE: Microsoft Names Klein To Replace Liddell As CFO
By Jessica Hodgson, Of DOW JONES NEWSWIRES
(Adds further detail, analyst comment.)
SAN FRANCISCO -(Dow Jones)- Microsoft Corp. (MSFT) Tuesday said Chief
Financial Officer Chris Liddell will leave the company at the end of this year
to pursue a new job and named Peter Klein as his successor.
Liddell, who has held the position since 2005, has generally been applauded by
Wall Street for his guiding of the software giant's finances throughout the
recession. The company announced its first-ever official round of layoffs in
January, and is counting on the latest release of its Windows software to help
it rebound following a string of downbeat quarters.
Liddell joined Microsoft after serving as finance chief at International Paper
Co. (IP) and chief executive at New Zealand's second-largest listed company,
Carter Holt Harvey Ltd. (CAH-NZ).
Klein, 47 years old, joined Microsoft in February 2001 and currently serves as
chief financial officer of Microsoft's business division, the company's largest
by revenue. He also served in a similar role at the company's server and tools
business. Before joining Microsoft, Klein spent 13 years in corporate finance,
primarily in the communications and technology sectors.
Liddell will stay at Microsoft through Dec. 31 to ensure a smooth transition,
the company said. A company spokesman wasn't immediately able to comment on what
position Liddell, 51 years old, was seeking.
Liddell's departure from Microsoft surprised Wall Street, analysts said. But
they didn't regard it as indicative of any conflict with the company's other
senior executives or see any broader management changes in the works.
A person familiar with the matter emphasized that Liddell was interested in
taking on a broader challenge than that of a chief financial officer. This could
include either working as a chief executive officer or pursuing a career with a
hedge fund or in private equity, this person said. Liddell wasn't available to
discuss his plans.
But analysts emphasized that Liddell was broadly respected by Wall Street. He
presided over attempts to introduce a greater culture of financial efficiency
and focus on investor value than Microsoft had previously seen in its 23-year
history as a public company.
As well as announcing a wave of layoffs, Liddell was at the helm when
Microsoft raised debt for the first time. He also boosted investor dividends and
stock buybacks. In the past fiscal year, Microsoft said, it has returned $14
billion to shareholders.
"Microsoft's a difficult company to come into as an outsider and he came in
and not only survived but helped to change the financial culture," said Sandeep
Aggarwal, an analyst with Collins Stewart.
"His biggest contribution has been helping the company to learn to save
money."
Shares were down 0.6% to $29.70 in after-hours trading.
-By Jessica Hodgson, Dow Jones Newswires; 415-439-6455; jessica.hodgson@
dowjones.com
(John Kell in New York contributed to this report.)
(END) Dow Jones Newswires
11-24-091923ET
Copyright (c) 2009 Dow Jones & Company, Inc.
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