Feeds

CA gang of three to return $550m shares

Court rules stock giveaway was unlawful

  • alert
  • submit to reddit

Top three mobile application threats

Three head honchos at Computer Associates were yesterday ordered by a US court to return stock worth $550 million. The 9.5 million shares were part of a 20.25 million share grant given to the three execs as part of an executive compensation package authorised by shareholders in 1995.

The lawsuit, filed on behalf of shareholder Lisa Sanders last September, claimed the software company had granted more stock than was allowed. Delaware Chancery Court ruled the shares were received improperly and said the company had exceeded its authority in granting the extra 9.5 million shares.

Last year CA took a charge of $1.1 billion to give the stock to chairman and CEO Charles Wang, president and COO Sanjay Kumar, and executive VP Russell Artzt. Wang, who stood to gain the lion's share of the original $1.1 billion windfall, was held up as an example of executive greed by shareholder activists, according to Reuters.

The New York company said it had not yet reviewed the ruling, but claimed that it ran counter to "reasonable expectations that all the parties had when the plan was approved by CA's shareholders" in 1995. "The company will study the opinion before deciding on further steps, including the likelihood of an appeal," it added.

The court also told Wang, Kumar and Artzt to account for profits traceable to the 9.5 million shares. The payout stemmed from CA's booming share performance from 1995 to 1998. The company's value more than tripled to more than $30 billion in the period. CA recorded sales of $5.3 billion for the year ended June 1999. ®

3 Big data security analytics techniques

More from The Register

next story
Sorry London, Europe's top tech city is Munich
New 'Atlas of ICT Activity' finds innovation isn't happening at Silicon Roundabout
MtGox chief Karpelès refuses to come to US for g-men's grilling
Bitcoin baron says he needs another lawyer for FinCEN chat
Dropbox defends fantastically badly timed Condoleezza Rice appointment
'Nothing is going to change with Dr. Rice's appointment,' file sharer promises
Audio fans, prepare yourself for the Second Coming ... of Blu-ray
High Fidelity Pure Audio – is this what your ears have been waiting for?
Did a date calculation bug just cost hard-up Co-op Bank £110m?
And just when Brit banking org needs £400m to stay afloat
Zucker punched: Google gobbles Facebook-wooed Titan Aerospace
Up, up and away in my beautiful balloon flying broadband-bot
Apple DOMINATES the Valley, rakes in more profit than Google, HP, Intel, Cisco COMBINED
Cook & Co. also pay more taxes than those four worthies PLUS eBay and Oracle
prev story

Whitepapers

Designing a defence for mobile apps
In this whitepaper learn the various considerations for defending mobile applications; from the mobile application architecture itself to the myriad testing technologies needed to properly assess mobile applications risk.
3 Big data security analytics techniques
Applying these Big Data security analytics techniques can help you make your business safer by detecting attacks early, before significant damage is done.
Five 3D headsets to be won!
We were so impressed by the Durovis Dive headset we’ve asked the company to give some away to Reg readers.
The benefits of software based PBX
Why you should break free from your proprietary PBX and how to leverage your existing server hardware.
Securing web applications made simple and scalable
In this whitepaper learn how automated security testing can provide a simple and scalable way to protect your web applications.