CA's Kumar Resigns Amid Accounting Probe

Apr 21, 2004

Jim Wagner

Kumar's downfall comes as federal regulators investigate the Islandia, N.Y.-based company's accounting practices, some of which stretch back to 2000.

The probe has already wrought the resignations of key executives, as well as guilty pleas from several involving fraud charges. Federal officials have accused the company of fraudulent accounting practices that distorted its revenue.

Lewis Ranieri, another director on the CA board of directors, will take over the chairmanship and begin the process of finding an interim CEO before settling on a new executive to helm the day-to-day operations of the company.

In a statement, the company's board of directors said it believed Kumar's decision to step down is in the best interests of CA's customers, shareholders and employees.

"The audit committee's and the entire board's exhaustive review of these matters resulted in the removal of a number of individuals from the company," said Lewis Ranieri, the board's lead independent director since 2002, who has been elected chairman of its board of directors.

"The changes in Sanjay's role are not based on the conclusion that he engaged in any wrongdoing. Nonetheless, the conduct in question occurred during his tenure, and the board felt this action was appropriate."

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