Saturday, June 19, 2021

CA ex-CEO Kumar loses perks after indictment

Computer Associates International Inc. has revoked perks, including office space and home security services, that it handed out to former Chairman and Chief Executive Officer (CEO) Sanjay Kumar after he left the company last month.

In a letter dated last Wednesday, Executive Vice President and General Counsel Kenneth Handal gave 60 days notice to Kumar that CA was revoking the benefits. The letter was included in a U.S. Securities and Exchange Commission filing.

On Sept. 17, Kumar was indicted by a federal grand jury in Brooklyn, New York, on charges of securities fraud conspiracy and obstruction of justice. The indictment was unsealed last Wednesday.

In connection with Kumar’s resignation as chief software architect in June, CA’s board of directors agreed to provide him with office space and an administrative assistant of his choice for as long as five years, as well as telephone and network connections, according to an Aug. 26 letter included in the filing on Monday.

CA also agreed to provide home security services for about US$9,000 per year. It warned that it could revoke the benefits for good cause with 60 days notice. Other arrangements, including one for medical insurance for Kumar and his family for 20 years, were not revoked in last Wednesday’s letter.

Kumar and CA’s former worldwide head of sales, Stephen Richards, are accused of involvement with accounting fraud during CA’s fiscal year 2000 in which licence agreements were backdated to shift revenue into previous quarters. Last week Kumar pleaded not guilty. Kumar stepped down as chairman and CEO in April and was chief software architect until June.

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Jim Love, Chief Content Officer, IT World Canada
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