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Article

Title: Kumar exit prompts CA user worries: Accounting inquiries inch...

Author: Musich, Paula Article Type: Company
Source: eWeek, v21 n17 p1(3) Publication Date: Apr 26, 2004
  ISSN: 1530-6283
  Illustrations: Charts
URL of Publication: http://www.eweek.com

CA's board of directors has removed Sanjay Kumar from his positions as chair and CEO, a decision that has 'robbed Computer Associates International (CA) of what many users considered a renaissance at the company' and has prompted confident customers to doubt the wisdom of dealing with a vendor whose credibility is weakened. Kumar is no longer at CA's helm, but was given a newly created position, chief software architect. Leis Ranieri was elected chair of the board, and Kenneth Cron has been offered the position of interim CEO. Employees interviewed seem surprised at the board's decision to allow Kumar to stay at the business. One employee commented that many expected Kumar to be fired and that Kumar will probably not stay on long. Some CA customers say several events, including the accounting scandal, executive changes, and denials of wrongdoing from senior management has shaken their confidence. A reseller is still pulling CA products out of new software contracts, and some customers have contacted CA for an explanation after Kumar's reassignment. CA has a chance to correct its pat h in order to prevent an Enron- or Tyco-like debacle. A spokesperson for customer the College of the Holy Cross hopes they company remains focused and expresses confidence in CA's staff. Several CA executives have pleaded guilty to charges of securities fraud conspiracy and obstruction of justice conspiracy, and the SEC has filed civil actions against them, charging the executives with accounting fraud.

Special Features: Charts

Companies:
Computer Associates International Inc

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