Kumar steps down as CA CEO

Computer Associates International Inc. (CA) Chairman and Chief Executive Officer (CEO) Sanjay Kumar will vacate those positions, the company said Wednesday. Kumar will remain with CA in the newly created role of chief software architect. Board member Lewis Ranieri has been elected chairman. CA will soon name an interim CEO, the company said.

The management change comes amid increasing pressure from investigations by the U.S. Securities and Exchange Commission (SEC) and U.S. Department of Justice (DOJ) into accounting violations in the company's 2000 fiscal year. CA, one of the industry's largest software providers, has admitted to booking revenue from contracts before they were finalized to inflate its quarterly results, a scheme that has already led to criminal charges against its former chief financial officer and several of his deputies.

"The changes in Sanjay's role are not based on the conclusion that he engaged in any wrongdoing. Nonetheless, the conduct in question occurred during his tenure and the board felt this action was appropriate," Ranieri said in a prepared statement.

Kumar served as CA's president and chief operating officer during the period in which the accounting violations occurred. In addition to relinquishing his management duties, Kumar has resigned from CA's board, the company said.

CA reiterated Wednesday its previous acknowledgement that the company cannot predict the scope or outcome of the SEC and DOJ investigations and that the company and its officers may face criminal and civil charges. The four executives charged to date have pleaded guilty to charges including securities fraud and obstruction of justice.

Join the newsletter!

Error: Please check your email address.

More about CA TechnologiesDepartment of JusticeDOJSECSecurities and Exchange Commission

Show Comments
[]