Steve Ballmer's leaving. Now what?

NEW YORK (CNNMoney)

The outgoing Microsoft CEO repeatedly failed to anticipate where the consumer technology market was headed or figure out how Microsoft (MSFT, Fortune 500) could innovate in important areas.

That's not to say that Ballmer's tenure at Microsoft was pockmarked by bad ideas and abject failure (though the virus-filled Internet Explorer 6 and bug-ridden Windows Vista happened under his watch). The truth is that a lot of good ideas and products launched during the Ballmer era.

The problem is that many of those products and innovations came about as a desperate response to what competitors had launched. And some were missing one or two critical elements, which ended up holding them back from success.

That still rings true for Microsoft today. Consider the company's lineup of major products:

Windows 8: a reaction to its many missed opportunities in the tablet market. With PC sales sharply declining, its future success is still a big question mark.

Microsoft Surface: flawed execution and marketing confused consumers. Sales have been lackluster.

Windows Phone 8: smartphone users had already moved on to Apple's (AAPL, Fortune 500) iPhone and Google's Android by the time it arrived.

Microsoft Office: still successful, but Google (GOOG, Fortune 500) Docs is catching up and Microsoft knows it. Hence the release of Office 365 and its Web-based app earlier this year.

Xbox: one of the few bright spots of Microsoft's consumer facing divisions. But Microsoft's mistake-filled promotional blitz for the latest Xbox One has been a disaster.

Interactive: A tale of two Microsoft's CEOs

The next Microsoft CEO has a lot of work cut out for him or her.

If Microsoft sticks with its current plan of becoming an Apple-esque devices and services company, its new leader should probably be someone with a laser focus on product innovation (both hardware and software). If Ballmer's biggest shortcoming was ignoring the rise of mobile devices, the next CEO needs to be able to have the foresight to predict what's next, and have the skill to execute on that vision.

Another operations manager in the mold of Ballmer is not going to deliver on that.

Serving the PC market is still Microsoft's biggest cash cow, so Microsoft's next CEO shouldn't abandon that market by any means. But placing its hopes for a comeback on its past glories or even current hot tech trends will only set the company up for disappointment. It needs to look past that.

Luckily for Microsoft, the company is still in a position to succeed.

Related story: Ballmer gets no retirement pay but he's still crazy rich

One of the next big battles in tech will be control of the Internet TV space. Microsoft was smart enough to position the Xbox as an all-purpose home-entertainment device, and offer tons streaming TV, movies and music -- not just games. It also opened up a studio to develop its own TV content. If the Xbox One sells as well as its predecessor, it may end up having the type of clout Apple desires in the TV space.

Microsoft also has two wild cards in the form of Bing and Skype. Microsoft came very late to the search party and tried to fashion Bing as a search engine easy enough for dumb people, which was a mistake. But there's a second revolution happening in search. Google, Apple and Wolfram are all developing semantic search engines that attempt to figure out what he user actually wants, but none have solved the problem yet. Microsoft needs to strike while the iron is hot.

The same goes for Skype. Right now, messaging is fractured between Google Hangouts, Facebook (FB) Messenger, Whatsapp, iMessage, Line, Kik and more. Microsoft is one of the few companies to have a quality product - Skype - available on nearly every platform. Finding a way to make Skype the nexus for all of our communications is a surefire way to restore Microsoft to relevance.

Alternatively, the next Microsoft CEO could continue to chase low-hanging fruit and watch the company fade into nothingness, much like BlackBerry (BBRY) has.

MIcrosoft has a lot riding on its decision.s

First Published: August 23, 2013: 3:02 PM ET

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Busting the 5 myths of college costs

Much of the playbook for taking on the $40,000 average sticker price of a private school is out-of-date or just plain wrong.

(Money Magazine)

So you figure you've got this college thing under control. Not quite. Those expensive schools you ruled out? They might actually cost you less in the long run than some cheaper private or public institutions.

The federal loans for parents you're looking at so your kid doesn't graduate with debt? They may not be a better choice after all. As for thinking a technical major will be more helpful to Junior than a liberal arts degree ... sorry, it doesn't always turn out that way.

Even among savvy parents, myths and misinformation abound. Yet with the average four-year tab ranging from $71,500 at in-state public colleges to $240,000 at elite private schools, the last thing you need is to pay more than necessary, borrow more than you can handle, or pass up a college that can provide a great education at an affordable price.

What follow are the straight facts you need to make smart college choices.

MYTH NO. 1

The myth: Saving for college will hurt your chances of getting financial aid.

The reality: Any money you're able to save probably won't appreciably affect your chances for aid. Here's why: Under the federal financial aid formula, what matters most is your income, which is assessed up to 47%.

Related: Families scramble to pay for college

By contrast, a maximum of just 5.64% of savings in your name will be counted -- after excluding retirement accounts, any small business you own, and your home equity. A savings allowance based on your age and marital status ($30,700 for a married parent age 45 for 2014-15) will also be deducted.

As a result, parental savings typically have little impact in the government calculation of expected family contribution, says financial aid expert Mark Kantrowitz of Edvisor.com. Those savings will come in handy, though, to help pay that high expected contribution from your income.

True, nearly 400 private schools additionally use their own aid formula, which may factor in home and business equity. A high earner with substantial assets might qualify for less or no need-based aid at those schools as a result. Chances are, though, any aid you'd get would be in the form of loans, not grants, so you're still better off saving. Research from T. Rowe Price shows that each dollar you sock away could save you twice that amount in future borrowing costs.

What to do

Make friends with a 529. Only about one in four parents who save for college uses a 529 plan, says student lender Sallie Mae. Big mistake. You get more bang for your buck in a 529, since the money grows tax-free and withdrawals are tax-free, too, as long as the cash is used for school.

Look first to your state's plan; more than half offer a tax break to residents. Other low-fee options include New York's 529, Ohio College Advantage, and Wisconsin Edvest.

Shelter your shelter. "All schools will assess real estate that isn't your primary residence," says financial aid a expert Kal Chany at Campus Consultants in New York City. If you own a second home or investment property, taking out a home-equity line of credit and using the money to pay down consumer debt (to avoid having loan proceeds count as assets) will temporarily reduce your equity -- just make sure you can repay the loan.

Play the name game. Have assets in a taxable account in your kid's name? Uh-oh. They'll be assessed at a 20% rate. Fix: Use the account over time to buy stuff for your child that you'd get anyway, such as a new laptop or SAT tutoring. Then put an equivalent amount into a 529 in your name, where it will be counted at the lower parent rate, says Joe Hurley, head of Savingforcollege.com.

MYTH NO. 2

The myth: You can't afford a private college.

The reality: Don't confuse the eye-popping sticker prices at private schools -- $39,500 a year on average vs. $18,000 for the typical public college -- with the price you'd actually pay. Discounting by private colleges, especially for good students, has become the norm.

These discounts are typically awarded as merit aid and are given regardless of financial need. As the college-age population drops, schools are increasingly competing for students, sparking an awards arms race. In fact, today more students receive merit grants (44%) than get need-based aid (42%). Last year the average discount hit 45%, a record high, says the National Association of College and University Business Officers.

To be sure, Ivy League universities and some other top private schools still offer mainly need-based aid, but their definition of need often extends to higher-income families. And merit aid is available at many other high-quality colleges. For instance, Rice University offers academic grants averaging $15,000 to 22% of students; at Denison, about 46% of students get merit awards, which average $16,300.

What to do

Look for largesse. As your child begins to evaluate colleges, you'll want to assess how generous each is with handouts. To find the percentage of students who get merit money, go to collegedata.com. For details about a specific college's grants, check MeritAid.com.

Run a price check. Get a sense of what a certain private college will cost your family in particular, factoring in aid, by using the school's net price calculator. (Colleges are now required to offer this tool on their websites.)

Some schools load in merit awards based on your student's academic profile, while others give only a rough estimate. Either way, the results will be a good starting point for a discussion with the school's aid officer. Also compare the results with net prices at any state colleges your child is interested in; merit awards are on the rise at public schools too.

Improve your odds. Most private colleges are secretive about the formulas used to award merit aid. In general, your child has a better shot if her grades and SAT scores rank higher than the averages for a particular school, says Lynn O'Shaughnessy, head of Thecollegesolution.com.

Other factors that may provide an edge: intended major (a less popular one can help), community service, and musical talent. Some colleges even rate your child's interest in attending -- has yours taken a campus tour?

MYTH NO. 3

The myth: A liberal arts degree won't pay the bills.

The reality: Sure, grads with business or STEM (science, technology, engineering, and math) degrees tend to earn above-average salaries. But many liberal arts majors do as well or better.

Case in point: The top-earning 25% of history majors earned a median annual lifetime income of $85,000 vs. $82,000 for computer-programming majors, per a recent analysis by the Georgetown Center on Education and the Workforce.

And in some careers, lower salaries are offset by better job security. The typical education major earns $42,000, but only 4% are out of work. Biomedical engineers pull in $68,000, but 11% are unemployed.

Related: Does college still pay off?

Major isn't the only determinant of pay, either, notes Anthony Carnevale, the Georgetown Center's director: "Whether your child attends grad school, changes careers, gets promoted, or loses a job has a big impact on lifetime earnings."

Besides, many people end up in fields unrelated to their major -- an analysis of alumni by Williams College math professor Satyan Devadoss found that some arts majors went into banking, engineering, and tech, while some chem majors ended up in government and education. Also, a Chronicle of Higher Education survey of employers found that previous work experience was more important than one's major in hiring recent grads.

What to do

Focus on practical help. When comparing colleges, see what each offers to assist your child in developing work skills, says Andy Chan, VP of career development at Wake Forest University. Find out if the career office reaches out to freshmen, offers courses in résumé building, and helps students land paid internships. Some 60% of 2012 grads who held a paid internship got a job offer, according to the National Association of Colleges and Employers.

More: Student loans won't cripple your child financially.

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GM to return to Super Bowl advertising in 2014

GM's most recent Super Bowl ad, from 2012, for the Chevrolet Silverado.

NEW YORK (CNNMoney)

The automaker said Friday it was planning to advertise in the upcoming game to promote a fleet of new Chevrolet models. Chevy is introducing a dozen new cars and trucks in the U.S. between mid-2013 and the end of 2014.

GM sat out the most recent Super Bowl, citing the steep advertising cost.

"The timing of Super Bowl XLVIII lines up perfectly with our aggressive car and truck launch plans," Tim Mahoney, Chevrolet's chief marketing officer, said in a statement. "The Super Bowl is a great stage for showcasing the Chevrolet brand and our newest cars and trucks."

Related: Time Warner's fix for CBS blackout

GM (GM, Fortune 500) also skipped the big game in 2009 and 2010 as it recovered from bankruptcy and the financial crisis.

Spots during the Super Bowl, set to be broadcast on Fox, are selling for $4 million per 30-second ad, up from $3.8 million during the 2013 broadcast on CBS (CBS, Fortune 500). Fox has already sold 85% of the available ad space.

The steep demand is no surprise. This year's Super Bowl drew 108.4 million viewers, while the 2012 game became the most-watched program in U.S. history with 111.3 million.

First Published: August 23, 2013: 3:41 PM ET

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Steve Ballmer's leaving. Now what?

NEW YORK (CNNMoney)

The outgoing Microsoft CEO repeatedly failed to anticipate where the consumer technology market was headed or figure out how Microsoft (MSFT, Fortune 500) could innovate in important areas.

That's not to say that Ballmer's tenure at Microsoft was pockmarked by bad ideas and abject failure (though the virus-filled Internet Explorer 6 and bug-ridden Windows Vista happened under his watch). The truth is that a lot of good ideas and products launched during the Ballmer era.

The problem is that many of those products and innovations came about as a desperate response to what competitors had launched. And some were missing one or two critical elements, which ended up holding them back from success.

That still rings true for Microsoft today. Consider the company's lineup of major products:

Windows 8: a reaction to its many missed opportunities in the tablet market. With PC sales sharply declining, its future success is still a big question mark.

Microsoft Surface: flawed execution and marketing confused consumers. Sales have been lackluster.

Windows Phone 8: smartphone users had already moved on to Apple's (AAPL, Fortune 500) iPhone and Google's Android by the time it arrived.

Microsoft Office: still successful, but Google (GOOG, Fortune 500) Docs is catching up and Microsoft knows it. Hence the release of Office 365 and its Web-based app earlier this year.

Xbox: one of the few bright spots of Microsoft's consumer facing divisions. But Microsoft's mistake-filled promotional blitz for the latest Xbox One has been a disaster.

Interactive: A tale of two Microsoft's CEOs

The next Microsoft CEO has a lot of work cut out for him or her.

If Microsoft sticks with its current plan of becoming an Apple-esque devices and services company, its new leader should probably be someone with a laser focus on product innovation (both hardware and software). If Ballmer's biggest shortcoming was ignoring the rise of mobile devices, the next CEO needs to be able to have the foresight to predict what's next, and have the skill to execute on that vision.

Another operations manager in the mold of Ballmer is not going to deliver on that.

Serving the PC market is still Microsoft's biggest cash cow, so Microsoft's next CEO shouldn't abandon that market by any means. But placing its hopes for a comeback on its past glories or even current hot tech trends will only set the company up for disappointment. It needs to look past that.

Luckily for Microsoft, the company is still in a position to succeed.

Related story: Ballmer gets no retirement pay but he's still crazy rich

One of the next big battles in tech will be control of the Internet TV space. Microsoft was smart enough to position the Xbox as an all-purpose home-entertainment device, and offer tons streaming TV, movies and music -- not just games. It also opened up a studio to develop its own TV content. If the Xbox One sells as well as its predecessor, it may end up having the type of clout Apple desires in the TV space.

Microsoft also has two wild cards in the form of Bing and Skype. Microsoft came very late to the search party and tried to fashion Bing as a search engine easy enough for dumb people, which was a mistake. But there's a second revolution happening in search. Google, Apple and Wolfram are all developing semantic search engines that attempt to figure out what he user actually wants, but none have solved the problem yet. Microsoft needs to strike while the iron is hot.

The same goes for Skype. Right now, messaging is fractured between Google Hangouts, Facebook (FB) Messenger, Whatsapp, iMessage, Line, Kik and more. Microsoft is one of the few companies to have a quality product - Skype - available on nearly every platform. Finding a way to make Skype the nexus for all of our communications is a surefire way to restore Microsoft to relevance.

Alternatively, the next Microsoft CEO could continue to chase low-hanging fruit and watch the company fade into nothingness, much like BlackBerry (BBRY) has.

MIcrosoft has a lot riding on its decision.s

First Published: August 23, 2013: 3:02 PM ET

19.34 | 0 komentar | Read More

Busting the 5 myths of college costs

Much of the playbook for taking on the $40,000 average sticker price of a private school is out-of-date or just plain wrong.

(Money Magazine)

So you figure you've got this college thing under control. Not quite. Those expensive schools you ruled out? They might actually cost you less in the long run than some cheaper private or public institutions.

The federal loans for parents you're looking at so your kid doesn't graduate with debt? They may not be a better choice after all. As for thinking a technical major will be more helpful to Junior than a liberal arts degree ... sorry, it doesn't always turn out that way.

Even among savvy parents, myths and misinformation abound. Yet with the average four-year tab ranging from $71,500 at in-state public colleges to $240,000 at elite private schools, the last thing you need is to pay more than necessary, borrow more than you can handle, or pass up a college that can provide a great education at an affordable price.

What follow are the straight facts you need to make smart college choices.

MYTH NO. 1

The myth: Saving for college will hurt your chances of getting financial aid.

The reality: Any money you're able to save probably won't appreciably affect your chances for aid. Here's why: Under the federal financial aid formula, what matters most is your income, which is assessed up to 47%.

Related: Families scramble to pay for college

By contrast, a maximum of just 5.64% of savings in your name will be counted -- after excluding retirement accounts, any small business you own, and your home equity. A savings allowance based on your age and marital status ($30,700 for a married parent age 45 for 2014-15) will also be deducted.

As a result, parental savings typically have little impact in the government calculation of expected family contribution, says financial aid expert Mark Kantrowitz of Edvisor.com. Those savings will come in handy, though, to help pay that high expected contribution from your income.

True, nearly 400 private schools additionally use their own aid formula, which may factor in home and business equity. A high earner with substantial assets might qualify for less or no need-based aid at those schools as a result. Chances are, though, any aid you'd get would be in the form of loans, not grants, so you're still better off saving. Research from T. Rowe Price shows that each dollar you sock away could save you twice that amount in future borrowing costs.

What to do

Make friends with a 529. Only about one in four parents who save for college uses a 529 plan, says student lender Sallie Mae. Big mistake. You get more bang for your buck in a 529, since the money grows tax-free and withdrawals are tax-free, too, as long as the cash is used for school.

Look first to your state's plan; more than half offer a tax break to residents. Other low-fee options include New York's 529, Ohio College Advantage, and Wisconsin Edvest.

Shelter your shelter. "All schools will assess real estate that isn't your primary residence," says financial aid a expert Kal Chany at Campus Consultants in New York City. If you own a second home or investment property, taking out a home-equity line of credit and using the money to pay down consumer debt (to avoid having loan proceeds count as assets) will temporarily reduce your equity -- just make sure you can repay the loan.

Play the name game. Have assets in a taxable account in your kid's name? Uh-oh. They'll be assessed at a 20% rate. Fix: Use the account over time to buy stuff for your child that you'd get anyway, such as a new laptop or SAT tutoring. Then put an equivalent amount into a 529 in your name, where it will be counted at the lower parent rate, says Joe Hurley, head of Savingforcollege.com.

MYTH NO. 2

The myth: You can't afford a private college.

The reality: Don't confuse the eye-popping sticker prices at private schools -- $39,500 a year on average vs. $18,000 for the typical public college -- with the price you'd actually pay. Discounting by private colleges, especially for good students, has become the norm.

These discounts are typically awarded as merit aid and are given regardless of financial need. As the college-age population drops, schools are increasingly competing for students, sparking an awards arms race. In fact, today more students receive merit grants (44%) than get need-based aid (42%). Last year the average discount hit 45%, a record high, says the National Association of College and University Business Officers.

To be sure, Ivy League universities and some other top private schools still offer mainly need-based aid, but their definition of need often extends to higher-income families. And merit aid is available at many other high-quality colleges. For instance, Rice University offers academic grants averaging $15,000 to 22% of students; at Denison, about 46% of students get merit awards, which average $16,300.

What to do

Look for largesse. As your child begins to evaluate colleges, you'll want to assess how generous each is with handouts. To find the percentage of students who get merit money, go to collegedata.com. For details about a specific college's grants, check MeritAid.com.

Run a price check. Get a sense of what a certain private college will cost your family in particular, factoring in aid, by using the school's net price calculator. (Colleges are now required to offer this tool on their websites.)

Some schools load in merit awards based on your student's academic profile, while others give only a rough estimate. Either way, the results will be a good starting point for a discussion with the school's aid officer. Also compare the results with net prices at any state colleges your child is interested in; merit awards are on the rise at public schools too.

Improve your odds. Most private colleges are secretive about the formulas used to award merit aid. In general, your child has a better shot if her grades and SAT scores rank higher than the averages for a particular school, says Lynn O'Shaughnessy, head of Thecollegesolution.com.

Other factors that may provide an edge: intended major (a less popular one can help), community service, and musical talent. Some colleges even rate your child's interest in attending -- has yours taken a campus tour?

MYTH NO. 3

The myth: A liberal arts degree won't pay the bills.

The reality: Sure, grads with business or STEM (science, technology, engineering, and math) degrees tend to earn above-average salaries. But many liberal arts majors do as well or better.

Case in point: The top-earning 25% of history majors earned a median annual lifetime income of $85,000 vs. $82,000 for computer-programming majors, per a recent analysis by the Georgetown Center on Education and the Workforce.

And in some careers, lower salaries are offset by better job security. The typical education major earns $42,000, but only 4% are out of work. Biomedical engineers pull in $68,000, but 11% are unemployed.

Related: Does college still pay off?

Major isn't the only determinant of pay, either, notes Anthony Carnevale, the Georgetown Center's director: "Whether your child attends grad school, changes careers, gets promoted, or loses a job has a big impact on lifetime earnings."

Besides, many people end up in fields unrelated to their major -- an analysis of alumni by Williams College math professor Satyan Devadoss found that some arts majors went into banking, engineering, and tech, while some chem majors ended up in government and education. Also, a Chronicle of Higher Education survey of employers found that previous work experience was more important than one's major in hiring recent grads.

What to do

Focus on practical help. When comparing colleges, see what each offers to assist your child in developing work skills, says Andy Chan, VP of career development at Wake Forest University. Find out if the career office reaches out to freshmen, offers courses in résumé building, and helps students land paid internships. Some 60% of 2012 grads who held a paid internship got a job offer, according to the National Association of Colleges and Employers.

More: Student loans won't cripple your child financially.

19.34 | 0 komentar | Read More

GM to return to Super Bowl advertising in 2014

GM's most recent Super Bowl ad, from 2012, for the Chevrolet Silverado.

NEW YORK (CNNMoney)

The automaker said Friday it was planning to advertise in the upcoming game to promote a fleet of new Chevrolet models. Chevy is introducing a dozen new cars and trucks in the U.S. between mid-2013 and the end of 2014.

GM sat out the most recent Super Bowl, citing the steep advertising cost.

"The timing of Super Bowl XLVIII lines up perfectly with our aggressive car and truck launch plans," Tim Mahoney, Chevrolet's chief marketing officer, said in a statement. "The Super Bowl is a great stage for showcasing the Chevrolet brand and our newest cars and trucks."

Related: Time Warner's fix for CBS blackout

GM (GM, Fortune 500) also skipped the big game in 2009 and 2010 as it recovered from bankruptcy and the financial crisis.

Spots during the Super Bowl, set to be broadcast on Fox, are selling for $4 million per 30-second ad, up from $3.8 million during the 2013 broadcast on CBS (CBS, Fortune 500). Fox has already sold 85% of the available ad space.

The steep demand is no surprise. This year's Super Bowl drew 108.4 million viewers, while the 2012 game became the most-watched program in U.S. history with 111.3 million.

First Published: August 23, 2013: 3:41 PM ET

19.34 | 0 komentar | Read More

India's finance minister tries to stem panic

India's finance minister is working to restore calm as investors pull their money out of the country.

LONDON (CNNMoney)

India has had a rough few weeks, with the rupee falling to a historic low and equity markets tumbling by 11% as investors pull their money out of the country.

In a press conference Friday, Finance Minister P. Chidambaram tried to restore confidence even as he acknowledged that the country was facing a challenging time.

"We believe that the rupee is undervalued and has overshot what is generally believed to be a reasonable and appropriate level," he said, according to a written statement. "Capital inflows will, in due course, correct the position."

India has been caught up in an emerging markets sell-off, triggered by talk of tighter U.S. monetary policy. But the slide has been exacerbated by local factors, including a large current account deficit, which reflects the nation's tendency to import more than it exports and leaves it reliant on foreign capital.

Chidambaram vowed to shrink India's current account deficit this fiscal year, bringing it down to $70 billion from $88 billion in 2012-2013.

He reassured investors that "there was -- and is -- no intention to introduce any type of capital control", which could further choke off foreign investment.

Related: Indian stocks plunge 11% in a month

Despite vows to stabilize the economy and allow the free flow of capital, investors and economists seem unconvinced.

Chidambaram's words appear to contradict the government's controversial move last week to restrict the amount of money Indian citizens can take out of the country. Similar restraints on how much Indian companies can invest abroad sparked concerns that foreigners may be subject to restrictions on their cash.

Kathleen Brooks, a research director at FOREX.com, said that policymakers' reaction to the slide in the rupee has been "piecemeal" and contradictory.

"They have limited the flow of money, and that's a capital control," she said.

Related: Nissan resurrects Datsun in India

India's economy grew by 5% in the year to March 31, 2013, its slowest pace in a decade, and failed to pick up pace in the first quarter of the current fiscal year.

Chidambaram said he was considering further economic reforms and forecast that growth would accelerate over the next few quarters.

"Therefore, there is no cause for the panic that seems to have gripped the currency markets and that is feeding into other markets," he said.

Chidambaram's reassurances that growth will soon gain speed may be optimistic. Analysts say corruption and bureaucracy are slowing progress.

"India has been ravaged by crony capitalism and corruption in the last five years," said Sourindra Banerjee, assistant professor of marketing at the Warwick Business School. "The country has always suffered from this, but with so much foreign investment now tied up in Indian financial markets it can't get away with it anymore."

And time for making bold new reforms is running out with national elections due to take place by May 2014.

On Thursday, the rupee hit a record low versus the U.S. dollar, falling by roughly 20% in less than a year. The rupee recovered slightly Friday and the country's benchmark index, the Mumbai Sensex, bounced back at the end of the week from its latest series of falls.

First Published: August 23, 2013: 9:52 AM ET

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Steve Ballmer's letter to employees

NEW YORK (CNNMoney)

Microsoft Corp. today announced that Chief Executive Officer Steve Ballmer has decided to retire as CEO within the next 12 months, upon the completion of a process to choose his successor. In the meantime, Ballmer will continue as CEO and will lead Microsoft through the next steps of its transformation to a devices and services company that empowers people for the activities they value most.

"There is never a perfect time for this type of transition, but now is the right time," Ballmer said. "We have embarked on a new strategy with a new organization and we have an amazing Senior Leadership Team. My original thoughts on timing would have had my retirement happen in the middle of our company's transformation to a devices and services company. We need a CEO who will be here longer term for this new direction."

The Board of Directors has appointed a special committee to direct the process. This committee is chaired by John Thompson, the board's lead independent director, and includes Chairman of the Board Bill Gates, Chairman of the Audit Committee Chuck Noski and Chairman of the Compensation Committee Steve Luczo. The special committee is working with Heidrick & Struggles International Inc., a leading executive recruiting firm, and will consider both external and internal candidates.

"The board is committed to the effective transformation of Microsoft to a successful devices and services company," Thompson said. "As this work continues, we are focused on selecting a new CEO to work with the company's senior leadership team to chart the company's course and execute on it in a highly competitive industry."

"As a member of the succession planning committee, I'll work closely with the other members of the board to identify a great new CEO," said Gates. "We're fortunate to have Steve in his role until the new CEO assumes these duties."

Founded in 1975, Microsoft (MSFT, Fortune 500) is the worldwide leader in software, services and solutions that help people and businesses realize their full potential.

First Published: August 23, 2013: 10:19 AM ET

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Logger deaths jump in 2012

Deaths in the logging industry surpass fatalities among fishermen for the first time since 2004.

NEW YORK (CNNMoney)

There were 64 killed last year, according to an annual report released Thursday by the Bureau of Labor Statistics. That was 128 fatalities for every 100,000 workers employed, up 25% from 102 deaths in 2011. It was the first year since 2004 that the death rate for loggers led that of all other American workers.

"I'm quite surprised by that number because the industry is mechanizing at a rapid rate, which should bring down fatalities," said Eric Johnson, editor of The Northern Logger and a former logger.

Related: America's most dangerous jobs

The death rate for loggers has more than doubled since 2009. Logger fatalities surpassed the rate for fishermen, which is 117 deaths per 100,000 workers. And the rate is nearly 40 times higher than it is for the average U.S. worker -- 3.2 per 100,000.

Related: 'Deadliest Catch' not so deadly anymore

A boom in new home construction may have forced the industry to hire more inexperienced workers who are more prone to industry, said Neil Ward, vice president of the Forest Resources Association.

A similar problem seems to have dogged the construction industry, where many rookie workers were hired last year. Fatalities rose 5% in 2012, according to the BLS, the first increase for construction workers since 2006.

Still, it is very much in the best interests of the logging industry to keep workers out of harm's way, said Jim Geisinger, of the Associated Oregon Loggers.

"It's a dollars and cents issue," he said. "Employers have to buy worker's compensation insurance so it behooves them to keep loggers safe."

The cost of worker's comp can be enormous. Roger Smith, president of RL Smith Logging in Olympia, Wash., said he pays $19 per hour per man to the state for each tree feller and choker setter he employs. He's spent more than $2.3 million for worker's comp over the past 20 years. Smith pays the workers themselves about $20 an hour.

It's not easy to recruit workers, he added. "It's really hard work and a lot of people don't want to work that hard. The pool you're picking from is very thin," Smith said.

Related: Best Places: Where the jobs are

Overall, Geisinger said, logging has gotten safer. Just 20 years ago, most felling was done with hand-held chainsaws by loggers standing at the tree trunk. Today, loggers typically sit in the cabins of mechanical tree fellers, which use saws at the end of steel booms. It's safer for loggers because they're farther away from the tree, and protected inside a roofed vehicle.

Even mechanized logging, however, is an inherently dangerous occupation. Loggers are dealing with very heavy and irregularly shaped loads. Tree trunks are not made to stack like wood planks and can shift unexpectedly. Logs can swing around, fall in the wrong place or tumble down hills. Runaway tree trunks can crush limbs and torsos.

When accidents do happen, injured loggers are often in very remote areas, far away from medical help.

Industry experts agree that safety training for loggers is more comprehensive than it used to be, which has translated into safer working conditions, even if that's not reflected in this year's statistics.

"It is, by definition, a very dangerous profession," said Geisinger.

First Published: August 23, 2013: 10:21 AM ET

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Big bank's legal tab: $66 billion and growing

Bank's litigation costs related to the financial crisis and other misdeeds have already topped $66 billion.

NEW YORK (CNNMoney)

The government needs to move swiftly to prosecute crimes leading up to the credit crisis and extract more penalties from big banks. That's because the statute of limitations for prosecuting many of these crimes is five years.

And with the five-year anniversary of the demise of Lehman Brothers just a month away, there is likely to be a lot more discussion about what the government has done to compensate victims of the financial crisis.

Related: Feds say JPMorgan broke securities laws in mortgage deals

The Obama administration has been continually criticized for not doing enough to prosecute the large financial institutions. While $66 billion in litigation costs is a staggering number, it's a small portion of the $207 billion that the six largest financial institutions -- Bank of America, Citigroup (C, Fortune 500), Goldman Sachs (GS, Fortune 500), JPMorgan Chase (JPM, Fortune 500), Morgan Stanley and Wells Fargo (WFC, Fortune 500) -- have earned in profits over the past three and a half years, according to FactSet.

But the government appears to be stepping up its efforts lately. There has already been a barrage of new cases against the big banks. Some are related to the financial crisis and the housing market collapse from a few years ago. Earlier this month, the Justice Department sued Bank of America (BAC, Fortune 500), accusing the bank of defrauding investors about investments backed by troubled mortgages.

Other cases, however, are tied to newer allegations of misconduct regarding the trading activities of the big banks.

The Justice Department is investigating JPMorgan Chase's possible manipulation of energy markets. The bank settled a similar case with the SEC for $410 million in July.

Related: JPMorgan's legal problems continue to mount

The Justice Department also recently announced indictments against two JPMorgan Chase traders for their role in the bank's London Whale trades, which led to billions in losses.

And it looks like the government is just getting started.

Attorney General Eric Holder told the Wall Street Journal Tuesday that the Justice Department expects to announce more new cases against big banks in the next few months. At a CNBC conference in July, Preet Bharara, the U.S. Attorney for the Southern District of New York, said more indictments could be handed down for problems related to the financial crisis.

The big banks are prepping for this. In their most recent quarterly filings, the six largest financial institutions all estimated the potential cost of looming litigation. The total: $19.2 billion.

Still, several analysts said these banks have routinely low-balled such projections and that the real costs have been much higher.

The estimates from the big banks are all over the map too. Morgan Stanley (MS, Fortune 500), which has only paid out roughly $300 million for financial crisis era problems, said in its most recent SEC filing that it doesn't expect litigation to be material.

Analysts are most concerned about Bank of America's exposure to litigation, but it used $2.8 billion as the upper end of its estimates for pending litigation. JPMorgan Chase's estimate goes as high as $6.8 billion.

Of course, it's impossible to predict what new lawsuits might still come up and how the existing ones will be settled.

But one thing is clear. The banks won't be putting the financial crisis behind them anytime soon.

"This will linger." says Credit Suisse bank analyst Moshe Orenbuch. "The banks will be paying out money to attorneys and for settlements for several years."

First Published: August 23, 2013: 5:50 AM ET

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