Wang Retires As CA Chairman, Board Member

CA's board appointed President and CEO Sanjay Kumar to succeed Wang, who was named to the honorary position of chairman emeritus.

"I am pleased to have completed the transition of leadership to Sanjay, who has been a trusted colleague and a valuable partner, in a smooth and orderly way," said Wang in a statement.

"It is very gratifying to have completed this important step successfully by grooming and recommending my successor," the statement continued. "CA's product and service offerings are strong and competitive, our business model has gained broad acceptance and our business performance has shown undeniable signs of strength in a very difficult environment. We also have a strong board of directors that is well informed about the business and supportive of management. I am confident that Computer Associates, with a new generation of strong leadership, is well positioned for its next great period of growth and success.

"I never imagined that the company that I started with three colleagues and one product over 25 years ago would reach such great heights in this exciting industry," Wang continued. "More importantly, I am confident that Sanjay and his management team will carry CA even higher in the years to come. I will remain a loyal fan and supporter of CA while I now devote more of my time and energies to my many other interests and charitable endeavors."

Wang, 58, founded Computer Associates in 1976 with three associates. Kumar joined CA in 1987 and has served as president and CEO since August 2000.

"The board of directors thanks Charles not only for his many contributions over the years, but also for his leadership in the way he oversaw this successful transition," said Lewis Ranieri, who will continue to serve as the board's lead independent director. "The board's unanimous choice of Sanjay to succeed Charles as chairman is a reflection of our confidence in the path that Sanjay has charted for the company.

Wang's departure comes amid a federal investigation into CA's accounting practices, a query with which the company is cooperating, according to Kumar.

A board-ordered investigation found no irregularities, according to the company. The review was conducted by PricewaterhouseCoopers, which had not previously performed audits or accounting work for CA.

Last month, CA reported a loss of $52 million, or 9 cents per share, for the quarter ended Sept. 30. That compares with a loss of $291 million, or 50 cents per share, for the same quarter a year ago.

CA reported $772 million in revenue for the quarter, up 5 percent from $733 million the same quarter last year.

Excluding items, CA reported earnings of 4 cents per share, which beat financial analysts' estimates.