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CA LOOKS TO IBM MODEL

After 26 years with IBM, soon-to-be CEO plans to implement a similar organizational structure in Islandia

BY MARK HARRINGTON
STAFF WRITER

January 22, 2005

The new IBM-bred president and chief executive-elect of Computer Associates told employees Friday he'll speed the company's move to autonomously run business units and appoint an executive to sharpen its technology vision and acquisition efforts.

John Swainson, the company's CEO-in-waiting who spent 26 years in top software posts at IBM, is moving the Islandia software company along an organizational structure similar to that of his former employer. The premise is that each of perhaps half a dozen business units will have separate profit-and-loss responsibility, product development and marketing.

Swainson named CA veteran and co-founder Russell Artzt to the new post of executive vice president for products, with all heads of the new business units reporting to him. He'll oversee all the company's product development efforts. Artzt, a veteran research-and-development executive and board member who continues to oversee the company's eTrust security business, reports to Swainson.

In a related development, former executive vice president for product development, Mark Barrenechea, was named executive vice president of technology strategy and chief technology architect. The former Oracle executive becomes the company's top technology visionary, setting the company's future tech strategy, and its hunt for mergers and acquisitions. He'll also report to Swainson.

Swainson wasn't available Friday but is expected to speak during a conference call Tuesday evening, when CA releases third-quarter earnings.

Shares of CA, which Merrill Lynch this month downgraded to "neutral" from "buy," closed down 14 cents Friday to $28.12.

Copyright 2005, Newsday, Inc.

 

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