Software giant Computer Associates International Inc. plans to reassign its general counsel to a new position within the company, according to the Wall Street Journal, which cited a memo delivered to a number of Computer Associates employees.
According to the report, chief executive officer Sanjay Kumar told Steven Woghin that he would be looking for a new general counsel. No reason was given, beyond a vague statement that the development was “based on circumstances and conversations” between the two men, pointed out the Journal.
In the memo, Kumar described the “intense personal demands” of the general counsel’s position. “More than three years of proxy battles and government investigations have left Steve with a desire to focus his talents and experience in other parts of our business,” the memo said, according to the Journal.
In January, Lloyd Silverstein, a former senior vice president of finance who had worked in CA’s finance department for nearly 16 years, pleaded guilty to federal charges stemming from premature recognition of revenue from software-license contracts in fiscal 2000.
Two weeks ago, Moody’s Investors Service cut the debt ratings of Computer Associates to junk, citing ongoing investigations as well as the company’s maturing debt and intensifying competition in information technology. Uncertainty associated with the investigation into the company’s revenue recognition practices, added Moody’s, may hamper the company’s refinancing of upcoming maturing debt, including $825 million of senior notes maturing in April 2005.