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For the earlier news report of the rumored executive departure confirmed in the article below, see:

June 5, 2006 Newsday

"Challenge at CA: End the turmoil"


The Wall Street Journal  

June 6, 2006


CA Global Sales Chief Becomes
The Latest Executive to Depart

Company Has No Plans
To Fill Corgan's Position;
Commissions Issue Simmers
June 6, 2006; Page B11


CA Inc.'s world-wide sales chief is leaving in the wake of a costly sales-commission debacle, continuing an executive-suite exodus.

The software maker said Gregory Corgan, 52 years old, was leaving the post, which he has held since 2004. CA, based in Islandia, N.Y., and formerly known as Computer Associates International, said it won't fill the job. Instead, five lower-level sales executives will report directly to recently promoted Chief Operating Officer Michael Christenson. CA stock, which has been falling steadily in recent months, was down eight cents to $21.55 in 4 p.m. New York Stock Exchange composite trading yesterday.

In April CA shocked investors by disclosing that it expected earnings for its fourth quarter ended March 31 to fall below expectations, partly because of larger-than-expected sales commissions. Since then, it has said that it would delay reporting its results for fiscal 2006, ended March 31, because it needs more time to complete calculations of sales commissions and taxes. It also said that sales commissions weren't properly aligned with company growth. Last month Chief Financial Officer Robert Davis left the company by mutual consent. People familiar with the situation said Mr. Davis's departure was connected to the sales-commission issue and inaccurate forecasting of results from companies that CA acquired last year. Messrs. Corgan and Davis couldn't be reached for comment. CA didn't say what Mr. Corgan's plans were or give a reason for his departure.

Mr. Corgan's departure increases management turnover at CA, which has been trying to rebound from an accounting scandal in which contracts were backdated to inflate earnings in already-completed quarters. The scandal resulted in resignations and guilty pleas by a number of officers, including former Chief Executive Sanjay Kumar.

John Swainson, a former top software executive of International Business Machines Corp., was named chief executive in late 2004 and has been trying to rebuild CA's software-development operations and investor confidence. CA's chief operating officer, Jeff Clarke, and chief technology officer, Mark Barrenechea, both left the company in recent months to take what they described as jobs they wanted at other companies.

Mr. Corgan, a onetime IBM executive, had joined CA in 2003 after brief stints at two small companies.

Write to William M. Bulkeley at bill.bulkeley@wsj.com1

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