Computer Associates...Well, It's a Start

It will take more than removing Kumar as CEO to dispel the clouds. The board should seek an outsider to be the new chief

The board of directors of software maker Computer Associates International Inc. (CA ) has been patient -- many would say to a fault. Even as a two-year federal investigation of alleged accounting misdeeds at the Islandia (N.Y.) company edged closer and closer to Chairman and CEO Sanjay Kumar, the board held off on replacing him. Despite a guilty plea by former CFO Ira Zar on securities-fraud charges on Apr. 8 in which he implicated "high-level" executives in the alleged scheme to misallocate revenues, the board said its internal investigation had not turned up evidence that Kumar broke the law.

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