Microsoft will complete its work to find a new CEO in “the early part of 2014”, according to a blog post by John Thompson, a member of Microsoft’s board of directors, who added he is “pleased” with progress so far.

Steve Ballmer announced in August that he would retire from Microsoft within 12 months and the board of directors has been conducting a thorough search for his replacement, who will be only the third CEO in Microsoft’s 38 year history.

After defining its criteria, Thompson said the board “cast a wide net across a number of different industries and skill sets” and identified more than 100 candidates, which it then whittled down to about 20 people. As the group was narrowed, deeper research and investigation was conducted on the individuals.

“We’re moving ahead well, and I expect we’ll complete our work in the early part of 2014. As a board, we are determined and confident that the company’s third CEO will lead Microsoft to renewed and continued success,” said Thompson.

Names connected with the role include Ford CEO Alan Mulally, erstwhile Nokia CEO Stephen Elop, former Skype boss Tony Bates, and head of Microsoft’s cloud and enterprise division, Satya Nadella.

Qualcomm’s next CEO, Steve Mollenkopf, was also connected to the Microsoft role before it was announced he would be succeeding Paul Jacobs at the chipmaker.

Microsoft has been losing ground to Apple and Google in the mobile space, as Ballmer focused on devices such as the Surface tablet and Xbox gaming console, and offering software over the internet.

Following the launch of Windows Phone 8 in October 2012, Microsoft has still to prove its viability as a third ecosystem to seriously challenge Android and iOS, although there have been some (limited) positive signs.

Microsoft was reportedly leaning towards Mulally, who saved Ford from a US government bailout in 2009, making him the kind of turnaround specialist favoured by many Microsoft investors.

However, a Ford representative told Bloomberg that the situation at the car maker had not changed and Mulally “remains completely focused on executing our One Ford plan”.

Microsoft co-founder and chairman Bill Gates noted in November that the CEO role is a complex role to fill, due to the company’s complex business model, and the requirement to lead a highly technical organisation and work with top technical talent.