CA revokes benefits to Sanjay Kumar

By SiliconIndia   |   Tuesday, 28 September 2004, 07:00 Hrs
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NEW YORK: Computer Associates International on Monday said it has revoked home security and office support benefits to former chief executive officer Sanjay Kumar, who was indicted last week on charges related to a $2 billion accounting scandal at the company.

The software maker, which last week agreed to pay $225 million to shareholders to avoid federal criminal charges, said in July that it would provide Kumar with phone and network support and home security services at an annual cost of $9,000, off-premises office space, one assistant and medical insurance.

Computer Associates revoked all those benefits, except for 20 years of medical insurance for Kumar and his family subject to his death or his obtaining insurance from a new employer, according to a letter sent to Kumar's attorney last week.

The letter did not address the major issue of whether Kumar's sizable past compensation associated with restated periods will be recalled. The company is working with the government to help recoup "all ill-gotten gains," a company spokeswoman said. Kumar's attorney declined to comment.

Kumar last Thursday pleaded not guilty to securities fraud and obstruction of justice charges. He faces a maximum prison sentence of 100 years if convicted.




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