Computer Associates has named former Dell executive
Robert W. Davis as executive vice president and CFO for
the enterprise software company, adding another fresh face to its executive
ranks as it puts an accounting scandal from 2004 behind it.
Davis, who previously held the title of vice president of corporate
finance and chief accounting officer at Dell, will report to Jeff Clarke,
CA’s COO. Clarke had previously served as the company’s chief of finance after
joining
in April of 2004, as a financial accounting scandal was peaking at the Islandia,
N.Y., company.
Regulators charged CA with improperly booking revenues, which
eventually led to the ouster of Sanjay Kumar as CA’s CEO.
In a statement, Clarke said Davis’s in-depth understanding of the
financial discipline, rigor and planning necessary to generate success in
the technology industry is unique. “We have been making significant progress
at CA and Bob will be a strong leader for the finance group as we continue
to move forward and lead the management software marketplace.”
Davis joins CA after an eight-year stint with Dell in various controller
positions that led to his position as Dell’s CFO. Prior to joining Dell, he
served as assistant corporate controller at MCI Communications Corporation.
He will join a roster of new senior management, such as IBM veteran John
Swainson, who was named
the new CEO last year as CA swept out managers
implicated in a so-called “35-day month” accounting scandal.
Executives reportedly kept sales books open long enough to meet financial
goals promised to investors.
Investors charged the company was renewing existing software contracts
with a higher up-front fee and giving investors the impression CA was gaining
new customers and higher revenues. The company has since
settled class-action lawsuits
out of court in August 2003, for a total of $144 million.
As internetnews.com previously reported, last 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. He 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.
