Boardroom battle over CA's next CEO
BY MARK HARRINGTON
STAFF WRITER
October 1, 2004
A boardroom tug-of-war is developing over the appointment of the permanent
chief executive officer for Computer Associates International Inc., with the
interim CEO garnering key support from top investors over an outsider,
several sources said Thursday.
The majority of CA's nine-member board and some large shareholders favor
Kenneth Cron, the interim chief executive, as the company's permanent CEO,
but two holdout directors are pushing for an outsider, and their preferred
candidate is from German software firm SAP AG, the sources said.
That candidate, Leo Apotheker, is SAP's global field operations president
and an SAP executive board member. He didn't respond to an e-mail Thursday
seeking comment.
Islandia-based Computer Associates is expected to name a permanent CEO
within the next month to 45 days, and at least three directors, including
chairman Lewis Ranieri, have issued remarks indicating they would support
Cron. The board has said a CEO search is nearing completion.
Another candidate for the job hails from IBM, they said. CA declined to
discuss specifics of the CEO search.
"There are a number of candidates," spokesman Dan Kaferle said. "The board
search committee is doing its work. We hope to have a permanent CEO in 30
days."
A representative for one large institutional holder of CA shares said while
Cron may be short on technical knowledge, his efforts in stabilizing CA
during turbulent government probes and a recent settlement warrant his
strong consideration for the permanent post.
"We think Ken Cron has done an extraordinarily good job and has very much to
contribute," the person said. "We could see an alternative where Ken is
complemented with a person with a strong technical background," possibly
through the addition of a president.
Cron has served as CEO on an interim basis since April, when Sanjay Kumar
stepped down amid a widening accounting scandal. Kumar also held the role of
president. Kumar, who cut ties to the company in June, was indicted last
week on securities fraud and obstruction of justice charges. He pleaded not
guilty.
Another person familiar with the board's search said Walter Haefner, who
owns 21 percent of CA's shares, also has expressed a desire to see Cron
remain in the post. Calls to his office in Switzerland weren't answered last
night.
Copyright © 2004,
Newsday, Inc.
|