RealTime IT News

CA to Choose IBM Vet as CEO

Looking to regain its footing, Computer Associates will reportedly tap IBM veteran John Swainson as CEO.

Swainson would face the dual challenge of restoring the management software maker's business and reputation after an accounting scandal that broke in April.

Swainson has spent 26 years at IBM and holds the title vice president of worldwide sales of the IBM Software Group. He would replace interim CEO Kenneth Cron.

The Islandia, N.Y.-based company's choice for CEO was first reported by the Wall Street Journal and Newsday. Spokespeople for CA and IBM were not available for comment.

CA is trying to clear its name after the "35-day month" scandal in which executives kept the sales books open long enough to meet financial goals promised to investors.

In September, Sanjay Kumar, former CA chairman and CEO, and Stephen Richards, former head of worldwide sales, were indicted by the Department of Justice and the U.S. Attorney's Office for their involvement in the alleged scheme.

Kumar faces a number of charges, including securities fraud. CA has since revoked home security and office support benefits given to Kumar as part of his severance package. Kumar has pleaded not guilty.

On the business side, CA recently cut 800 employees, or 5 percent of its workforce, to save $70 million a year. The company expects restructuring charges to cost $40 million, with most of it to be paid off in the second quarter of 2005.

CA officials have also promised to take a more active role in pushing the company's products, improving the company's marketing message while maintaining CA's technology vision. Recently, CA upgraded and unified its storage management software suite.