Looking to regain its footing, Computer Associates
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
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
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
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.