Forum for Shareholders of CA, Inc.

Forum Home Page

Pending Status

Forum activities relating to CA, Inc. are temporarily suspended pending release of a court-appointed Examiner's report on management compliance with a Deferred Prosecution Agreement.

CA Forum Home Page

CA Research Reference

 

For SEC filings of the company's report of its CEO's retirement, including copies of its press release and webcast transcript, see

 

Newsday, September 2, 2009 article

 

Get Home Delivery

 

Swainson has $14M reasons to exit smiling

September 2, 2009 By JAMES BERNSTEIN james.bernstein@newsday.com

John Swainson may be leaving CA Inc. with a smile for his success in turning around a troubled company, but there may be another reason he's smiling as well: The soon-to-be ex-chief executive will walk away with a retirement package of about $14 million, company documents show.

The 55-year-old Swainson, who announced Tuesday that he will retire effective Dec. 31, is entitled via his employment contract to a package that includes salary, bonus and stock, company officials said.

Gary Lutin, an investment banker who conducts a public CA shareholder forum, said Swainson's announcement seemed sudden and may signal unhappiness on the part of CA's board that the company has not been sold. Speculation has been that Islandia-based CA has been looking for a buyer, and Swainson was hired to find one. He has been at CA for nearly five years.

"I think we can assume a 55-year-old CEO wouldn't be suddenly retiring if he thought there was a reasonable chance of making an extra few million from selling the company anytime soon, and the board wouldn't be letting him retire if they thought there was any chance," Lutin said.

CA spokesman Dan Kaferle said the company would not comment on the timing of the announcement. But, he said, a transition will be "orderly and smooth."

CA has engaged "a number" of search firms and is looking inside and outside the company, Kaferle said. "We're not limiting our search to just the tech industry," he added.
 

***

 

Copyright 2008, Newsday Inc.

 

 

 

The Forum is open to all Computer Associates ("CA") shareholders, whether institutional or individual, and to any fiduciaries or professionals concerned with their investment decisions.  Its purpose is to provide shareholders with access to information and a free exchange of views on issues relating to their evaluations of alternatives, as described in the Forum Summary.

There is no charge for participation.  As stated in the Conditions of Participation, participants are expected to make independent use of information obtained through the Forum, subject to the privacy rights of other participants.  It is a Forum rule that participants will not be identified or quoted without their explicit permission.

Inquiries and requests to be included in the Forum's distribution list may be addressed to ca@shareholderforum.com.

The material presented on this web site is published by Gary Lutin, as chairman of the Shareholder Forum.