|Computer Associates is rebuilding itself.
Donald R. Friedman, 58, who spent 30 years at IBM, including a stint as vice president of marketing and strategy for the server group, will begin work next week, reporting to President-CEO John Swainson, also an IBM veteran.
$225 million settlement
The management software company settled with the Department of Justice and the Securities and Exchange Commission in September to the tune of $225 million in connection with "improper recognition of revenue and related reporting practices" from January 1998 through September 2000. However, the fallout from those investigations has been overwhelming, drawn out and damaging to the Computer Associates' brand.
More than a dozen executives were fired or resigned, with at least three, including the former chief financial officer and several senior vice presidents, pleading guilty to charges including conspiracy, fraud and obstruction. Former CEO Sanjay Kumar was indicted in September by the Justice Department on fraud and obstruction charges.
"Rebuilding the CA brand is one of our top priorities as we continue to move the company forward," Mr. Swainson said in a statement announcing Mr. Friedman's appointment.
Worldwide marketing efforts
Mr. Friedman will oversee the worldwide marketing for Computer Associates as well as individual product marketing groups in the company's newly formed business units.
Mr. Friedman will also oversee Computer Associates' agency relationship, which shifted in December from WPP Group's Y&R Advertising and Mediaedge:cia to an Interpublic Group of Cos. team led by Draft, New York, and including Initiative Media and Jack Morton Worldwide.