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Deal brings relief to CA workers anxious to move forward

By Richard J. Dalton, Jr. | Staff Writer

September 23, 2004

Employees at Computer Associates International Inc. said they expected bright glare on the company to subside now that the software giant agreed to settle allegations of accounting fraud.

Faced with charges that executives moved up revenues to meet targets expected by Wall Street analysts, the Islandia-based company settled with the Securities and Exchange Commission yesterday, agreeing to pay $225 million to shareholders and institute reforms internally.

A handful of CA employees expressed relief at the deal, saying it brings closure to the investigation.

"Thank God it's over," said Jim Bartunek, director of research and development. "I think it's no secret that it's been a big cloud hanging over us."

"It's had to have had an impact on our customers," he said. "Just to have it over, I think, is a very good thing."

CA granted interviews Wednesday with five employees in the presence of a public relations manager to discuss their personal views of the settlement and the mood at the company. Employees approached outside the company refused interviews.

Some employees interviewed said they're so busy the scandal didn't distract them. But Debra Novack, a public relations specialist at CA, said the controversy somewhat sidetracked employees. "We don't have to worry about it being a distraction any longer," she said.

Three former top executives were also charged with securities fraud yesterday, including former chairman and chief executive Sanjay Kumar. His attorney, Jack Cooney, said he will fight the charges.

Ilene Patrizio, associate media director, said Kumar helped grow the company, pushed to improve customer services and maintained top-notch benefits for employees, including a day-care center.

"It's very sad," Patrizio said of the charges against Kumar. "He's done a lot of good."

As part of the settlement, CA agreed to independent examinations during an 18-month probationary period, a move employees saw as a protective measure.

"If it's going to help us move forward and get out of this, I think it's fine," said Jim dePasquale, vice president of brand operations.

Patricia Cawley, CA's executive event briefing planner, said: "Let's hope we don't have any wrongdoing. Let's keep our hands clean."

The scandal has hurt not only outside stockholders but also employees' pocketbooks, as they own company stock through their 401k or the company's employee stock purchase plan. And some employees hold stock options.

Cawley joked that she had to defer retirement. But the truth isn't rosy either. "No one's happy when they see their savings go down," she said.