Investors pushing Microsoft board for a CEO candidate who can turnaround the company had Mulally and the Computer Sciences’ CEO Mike Lawrie their wish list to succeed Ballmer.  Some investors have also suggested to the board that co-founder Bill Gates should step down from his role as chairman, saying he stands in the way of radical reform at Microsoft.

Ballmer’s strategy focused on mobile technology such as Surface tablets and Xbox gaming console and turning key software into services provided over the Internet. The investors say that the new chief should not be bound by that strategy. They are concerned that, with both Gates and Ballmer up for re-election to Microsoft's board, they will retain their influence over the company.

Members of the CEO search committee have been speaking with dissenting shareholders, according to sources familiar with the conversations. Activist shareholder ValueAct Capital Management was offered a board seat by Microsoft in August. Several sources said the investor will also be given the same access as the board to the final five candidates.

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