Wang Resigns As CA Chairman

The transition, which is effective immediately, marks the first time since 58-year-old Wang started the company in 1976 that he will not hold an active role in CA's management or direction. Wang, who has been named to the honorary position of chairman emeritus, said in a statement that he plans to spend more time on "other interests and charitable endeavors."

The change comes as regulators continue their investigation into Computer Associates' accounting practices and only months after the company overhauled its board and named a corporate governance executive. The company said Wang's decision is not related to the recently opened investigation by the SEC into whether or not CA inflated its reported profits from 1995 to 1998 to improve its stock price.

But perhaps more important to solution providers, Wang's departure also comes only weeks after CA said goodbye to a key figure in its new channel strategy. In October, Mark Milford resigned from his position as senior vice president and general manager of North American channels at CA, where he was a major driver of the channel-preferred model for the company's storage business.

Before his unexpected departure, Milford had emerged as CA's biggest spokesperson for the channel-preferred model, which was designed to increase BrightStor sales via the channel and compete more effectively with the likes of Veritas. Milford spent much of his time trying to recruit new solution providers and re-establish ties with old partners through the alluring channel-preferred model.

Company watchers said the departure of Milford would shake the software giant at a time when it can ill afford mistakes in its channel strategy. Late last month, Milford's duties were rolled up under George Kafkarkou, former general manager for indirect sales in Europe, the Middle East and Africa who was named vice president of worldwide channel operations at CA.

Under Wang's leadership, CA grew from a three-person software company to become the world's most dominant manufacturer of mainframe utility software. That growth--much of it fueled by acquisition--helped the company increase its stock price by more than 200 percent through the 1980s and 1990s. In 1998, Wang made headlines for a $670 million pay package that made him one of the highest paid corporate CEOs, up there with Oracle CEO Larry Ellison and Disney CEO Michael Eisner. But the generous pay package came under fire when a good portion of the company's growth diminished, as CA shares lost more than 75 percent of their value over the last few years, losing a full $25 billion for investors.

According to published reports, a company spokesman said Wang will not receive a pension and that the company was not negotiating a retirement package for him.

Kumar, 40, joined CA in 1987 and has served as president and CEO since August of 2000.