Ex-chairman of Computer Associates calls it quits
By siliconindia staff writer   |   Monday, 07 June 2004, 19:30 IST
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NEW YORK: Sanjay Kumar, who headed Computer Associates International Inc. at a time that is now the subject of an accounting probe, left the company on Friday. The move, which pushed CA’s shares up as much as 4%, comes a week after it offered the government $10 million to settle the case that centres on early booking of $2.2 billion revenue in fiscal 2000 and 2001. “The board is committed to reaching a settlement of the government’s investigation into the company’s past accounting practices as quickly as possible,” said chairman Lewis Ranieri. “We are working hard to take the remedial steps necessary to put this entire matter behind CA. Sanjay’s decision to leave CA was made in that spirit.” Kumar, who had taken the title of chief software architect in April when he resigned as the chairman and CEO, becomes the 16th executive to leave the company in recent months due to the probes. Four former executives have pleaded guilty to charges including securities fraud. At issue in the probes has been early booking of revenue in order to meet Wall Street estimates. Kumar, who has not been charged with any wrongdoing and has said he did nothing wrong, was president of CA in its fiscal year ended March 31, 2000 — when more than $1.4 billion in contracts was booked early. “This is a very positive move for the company,” said Nitsan Hargil, an analyst with Friedman Billings Ramsey.”

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