Computer Associates International Inc.s co-founder and chairman Charles Wang retired on Monday, clearing the way for CEO Sanjay Kumar to take on the chairmans mantle.
Kumar, Wangs handpicked successor, was elected by CAs board of directors to the chairmans position Monday, when Wangs retirement became effective. Wang, who oversaw the growth of the $2.66 billion software company, also gave up his seat on the board of directors. The board named Wang Chairman Emeritus of the Islandia, N.Y., company.
"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 prepared statement.
Wang, 58, co-founded the company in 1976 and served as CEO and president during its rapid growth through multiple small and large acquisitions of sometimes-competing software companies.
Kumar, CEO since 2000, has guided the software behemoth through a turbulent two years. CAs board and executives were threatened twice for control of the company in a proxy battle mounted by Sam Wyly, who sold rival Platinum Technology to CA in the late 1990s.
CA responded to Wylys threat and criticisms with a shake-up of its board of directors. A number of outside, independent directors were named, and the company adopted a new set of corporate governance guidelines for the board.
CA in recent years has been investigated by the Department of Justice and the Security Exchange Commission, and the company, along with other mainframe software suppliers, was the earliest to see a precipitous drop in revenues after the Y2K spending spree ended and the dot-com bubble burst.
"CAs 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," said Wang in his prepared statement.
Wang intends to devote more time to his philanthropic activities, including an active role in The Smile Train, the National Center for Missing and Exploited Children and other charities focused on children.