Microsoft has chopped off the long list of candidates to replace its outgoing chief executive officer Steve Ballmer. Leading the pack are Nokia's top executive Stephen Elop and Ford Motor's Alan Mulally. Joining them are insiders Tony Bates who was the former CEO of Skype and Satya Nadella who serves as cloud and business head of Microsoft. According to reports, the list also includes another executive working for the company.

The software maker started with around 40 names and will continue to trim down the list until it finds the right man for the job before Ballmer retires next year. The board of Microsoft has formed a committee to seek external and internal potentials.

According to a report by Reuters, the names of the other candidates cannot be disclosed. Microsoft also did not detail the process of hiring but sources said that the committee has been speaking with executives from various sectors that might fit the top position.

Elop, Nokia's chief executive at the moment, is set to rejoin the ranks of Microsoft upon completion of its acquisition of the handset division the Finnish company for $7.2 billion. He used to run the business software division of Microsoft before moving to Nokia in 2010. The deal with Nokia was announced shortly after Ballmer's retirement announcement, placing Elop among the top favorites for the future vacancy.

Mullaly who has helmed Ford Motor since 2006  is being praised for helping the car manufacturer reverse its fortunes in 2009 without accepting a bailout by the federal government. Earlier reports said that he is not interested in the position and will keep his current post until 2014. Sources familiar to the matter, however, said that the executive has become more amenable in recent weeks. Mullaly is said to be inclined to return to Seattle where he stayed while performing his duties as CEO of Boeing before. He also collaborated with Ballmer and advised the latter in an attempt to tweak the company's management structure.

However, Ford continues to deny the reports.

"There is no change from what we announced last November. Alan remains fully focused on continuing to make progress on our One Ford plan. We do not engage in speculation," said Ford spokesperson Jay Cooney when interviewed by Reuters.

As for the known internal candidates Nadella and Bates, both are well-known to run key divisions of the business efficiently, making them a good replacement for Ballmer.

Meanwhile, some investors are reportedly worried that company chairman Bill Gates might return to the CEO post but people close to him have denied such speculations.