And The Sax Played On

Philippe Kahn still has a job. Good news, certainly, for the flamboyant founder and chief executive of software maker Borland International. Not so good, though, for the College Retirement Equities Fund (CREF) and the California Public Employees' Retirement System (CalPERS)--the two Borland investors that had declared their opposition to Kahn's reelection as chairman.

Kahn has come under increasing attack in the past year. After reporting a $70 million loss in Borland's fiscal year ended Mar. 31, the board revealed that Kahn was awarded favorably priced options for 1 million shares. Kahn also had to reimburse the company for private use of a company-leased plane and for production of a music compact disk on which Kahn played sax.

But at Borland's annual meeting on Aug. 30, board members denounced the controversy as overblown and insisted that there was no move under way to oust Kahn. Nearly 95% of the votes cast favored the chairman's reelection, Borland says. No shareholders spoke on the issue, and CalPERS said afterward it was just expressing dissatisfaction. For now, at least, Kahn isn't playing the blues.

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