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Microsoft CFO resigns
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December 22, 1999: 5:55 p.m. ET
Greg Maffei to leave software firm; John Connors to take over in January
By Staff Writer John Frederick Moore
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NEW YORK (CNNfn) - Microsoft Corp. Chief Financial Officer Greg Maffei resigned his post Wednesday to take the helm of a Canadian telecommunications network firm.
The Redmond, Wash.-based software company named John Connors, a veteran Microsoft (MSFT) manager, to replace Maffei effective Jan. 7.
Microsoft made the announcement after markets closed.
Microsoft shares gained 1-11/16 to close at 117-9/16 on the Nasdaq stock market. The news sent Microsoft shares tumbling in after-hours trade.
Click here to see an after-hours quote for Microsoft
"This is a huge loss for Microsoft,” said Art Russell, an analyst at Edward Jones. "It’s a pretty high-stress job in terms of the competition and the legal issues Microsoft faces.”
Maffei, a seven-year Microsoft executive who became CFO in July 1996, is leaving to become chief executive officer of Worldwide Fiber, a privately held Vancouver-based firm that is building a 22,000 mile fiber-optic network in the United States and Canada. He will remain with Microsoft through January to oversee the transition.
Since taking over as CFO, Maffei has overseen Microsoft’s enviable financial performance. The company routinely beats quarterly earnings expectations as its cash reserves continue to swell.
Maffei, a popular figure in the financial community, was also one of the principal engineers of Microsoft’s $5 billion strategic alliance with AT&T Corp. (T) earlier this year.
"Greg's contributions have been outstanding across the spectrum of numerous deal negotiations, in achieving excellence in the treasury management area and in guiding an outstanding internal and external management reporting team," said Bob Herbold, Microsoft's chief operating officer. "His strong financial management abilities have helped Microsoft's finance organization to be recognized as world-class.”
Russell noted, however, that Microsoft’s operations shouldn’t miss a beat.
"Microsoft is well known for its bench strength,” he said. "Connors has been at Microsoft for 11 years. His biggest challenge will be to step into the new role and establish relationships with the financial community. In terms of execution, they’ll be fine.”
Connors has spent 11 years with Microsoft in various senior management positions. In his most recent post as vice president of the worldwide enterprise group, he was responsible for the sales, services and relationship strategy for large, medium and small businesses across all industries.
Worldwide Fiber, established in 1998, designs, builds, operates and maintains high-speed fiber-optic networks for telephone service carriers and Internet service providers. 
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