CA Revokes Kumar's Perks
Sanjay Kumar stepped down as the company's CEO in April, but stayed on as chief software architect until June, when he was forced out.
In August, Kumar signed a deal with Computer Associates in which the company promised to pay for his office space and administrative assistant, his telephone and network connections and home security.
Last week, the day Kumar was indicted, the company sent him 60 days' notice that it would terminate the benefits. The notice was in a company filing with the Securities and Exchange Commission made public Monday.
Computer Associates will continue to provide health insurance for Kumar and his family. Under the agreement signed in August, the company will provide him with health insurance for up to 20 years. It will also pay any taxes he owes for receiving the health insurance.
The indictment against Kumar, filed Wednesday in federal court in New York, alleges that he participated in a scheme to backdate contracts at Computer Associates so the company could meet earnings targets. The indictment alleges that Kumar once flew to Paris to meet with a customer and while there signed a contract that was falsely backdated.
Kumar pleaded not guilty. His next court date is set for Nov. 23.
The company's board said in August that it had deferred a decision regarding additional pay or severance for Kumar "pending the resolution of the existing investigations" by the U.S. Attorney's Office and the SEC. It did not mention whether it had made a decision in the most recent filing.
The charges against Kumar came the same day the company agreed to pay $225 million to shareholders in a settlement letting it defer criminal prosecution. Under the unusual deal, an outside monitor will track Computer Associates' financial reporting while it makes three restitution payments of $75 million to shareholders over 18 months.
Copyright © 2004 The Associated Press. All rights reserved. The information contained in the AP News report may not be published, broadcast, rewritten or redistributed without the prior written authority of The Associated Press.