Report: Microsoft Top Execs Bates, Reller to Exit

Two of Microsoft (MSFT) chief executive Satya Nadella’s top lieutenants—Business Development and Evangelism executive vice president Tony Bates and Marketing executive vice president Tami Reller—are exiting the company, according to a new Re/code report relying on multiple sources.

Nadella reportedly disclosed the impending departures to his top staffers last Friday and plans to deliver the news to a wider audience March 4, the report said. At this point, there’s no word about where Bates and Reller are headed once they’re out the door.

Bates and Reller’s departures follow last week’s management shuffle that saw 20-year company veteran Julie Larson-Green move from Devices head to chief experience officer (CXO) in executive vice president Qi Lu’s Applications and Services Engineering Group, ostensibly to make room for incoming Nokia (NOK) chief Stephen Elop.

Reller, who joined Microsoft in 2001, also has served as chief marketing officer (CMO) and chief financial officer (CFO) for the Windows division. Bates, formerly Skype chief executive, came over in the 2011 acquisition and previously ran Microsoft’s Skype unit. He’s been handling the vendor’s key relationships with OEMs, strategic innovation partners, ISVs and developers and leads its corporate strategy team.

Re/code’s sources said Eric Rudder, Microsoft Advanced Strategy vice president, will take over Bates’ duties in an interim role while Chris Capossela, Consumer Channels Group corporate vice president and a 22-year company veteran, will take Reller’s place. 

Capossela also will be responsible for Microsoft’s advertising, in a move to shift those duties away from advertising and strategy executive vice president Mark Penn, who now will focus on new product areas and strategic investments, according to the report.

Reller has said she’ll stay on to ease Capossela’s transition into her old job but Bates’ departure is said to be imminent. He was a leading candidate for Microsoft’s top job that went to Nadella and, following the new chief’s coronation declined to make a long-term commitment to the company, according to the Re/code report.