A software company runs out of tricks; the past may haunt Computer Associates

Article Abstract:

Islandia, NY-based Computer Associates International Inc. looks to be healthy, rich and successful. At the end of its fiscal year on Mar. 31, 2001, the company reported a market value of $20.3 billion, profits of $696 million and sales of $6.1 billion. The company, however, run by Sanjay Kumar and Charles B. Wang, has a history of poor customer relations, high prices and insensitive treatment of employees. Computer Associates has also been accused of using 'creative accounting' methods for years, which have resulted in the overstatement of profits and revenues.

Planning, Evaluation, Financial management, Company business planning, Wang, Charles B.

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Computer Associates officials stand by their accounting methods

Article Abstract:

Computer Associates responded to a New York Times article questioning the company's financial report bu rebutting the news as misleading. The software commpany's chief, Sanjay Kumar was quick to assure the public that the pro forma, pro rata process of reporting earnings was accurate. The Times article relied on the word of ex-employees and analysts for its report. The company's cash flow fell $1.1 billion for 2000. They are not under formal investigation.

Sales, profits & dividends, Statistical Data Included, Reports, Company sales and earnings, Company earnings/profit, Corporation reports, Company reports, The New York Times (Newspaper)

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His Bonus Was Based on Inflated Profits. Will He Give It Back?

Article Abstract:

Computer Associates' recent revelation that company financial executives inflated revenue for FY ending Mar. 31, 2003 shed new light on compensation awarded to its chairman and CEO Sanjay Kumar. Since bonuses were based upon the amount of net income that exceeded financial goals, Kumar received 80,000 shares of stock and $3.2 million in cash. Profits had been based upon contracts before they were signed with customers. Kumar furthermore was able to sell 500,000 stock shares for $28.3 million during the period that profits were inflated. While Kumar is trying to correct the company's financial reporting procedures, he shows no indication of willing to return bonuses that were based upon false information.

Management dynamics, Executive changes & profiles, Public affairs, Personnel administration, Ethics, Officials and employees, Economic aspects, Compensation and benefits, Ethical aspects, Company business management, Financial misrepresentations, Financial misrepresentation

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