CA Names Former Dell Exec as CFO

Robert Davis is seen helping CA put accounting issues behind it and forge strategies going forward.

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.






0 Comments (click to add your comment)
Comment and Contribute

 


(Maximum characters: 1200). You have characters left.