CA Says It Has Begun Succession Planning for CEO McCracken
“Internal and external candidates will be reviewed,” Dan Kaferle, a spokesman for the Islandia, New York-based company, said yesterday in an e-mailed statement. “We expect to engage a firm to assist in that process. We are pleased with our strategy and progress as a company and are committed to ensuring the smoothest possible transition when the time comes.”
McCracken, who had served as CA’s chairman, stepped in as CEO after John Swainson retired at the end of 2009. Swainson was hired by Dell Inc. as president of its software group earlier this year. He worked as a senior adviser to private-equity firm Silver Lake after leaving CA.
The company, formerly known as Computer Associates International Inc., has seen sales and profit growth rebound in the past year, fueled by demand for corporate-computing services. Net income increased 12 percent to $211 million, or 45 cents a share, last quarter. Excluding some items, profit was 56 cents a share, compared with the 52-cent average of estimates compiled by Bloomberg.
CA also raised its dividend and buyback plan in January after being urged by investor Taconic Capital Advisors LP to boost shareholder returns. Taconic, co-founded by Kenneth Brody and Frank Brosens, acquired a 5.1 percent stake in CA and said in January the company could pay out more cash to shareholders, implement a more efficient capital structure and increase profitability in its enterprise solutions division.
McCracken worked at International Business Machines Corp. (IBM) for 36 years before joining CA. His contract expires in March 2013 and is reviewed annually, Kaferle said. McCracken has no specific retirement date.
“They’re not in any rush to get this done tomorrow,” Hedberg said. “Bill’s accomplished a lot in the two years he’s been there. He’s increased the dividend, he’s increased the buyback, and he’s bought more transparency to the business.”
CA shares were little changed in today’s trading, closing at $25.47. The stock has gained 26 percent this year.
The Wall Street Journal previously reported on the succession planning.
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