CA executives ordered to pay back $US550 million

CA executives ordered to pay back $US550 million

A judge last week ordered three Computer Associates (CA) executives, including chairman and CEO Charles Wang, to return to the US software vendor about $US550 million out of the $1.1 billion in stocks they had received in a compensation package.

The judge's order relates to a lawsuit filed by a number of CA shareholders last year. The suit alleged that the company's board of directors had approved what the shareholders deemed to be an excessive compensation package for Wang, Sanjay Kumar, CA, president and chief operating officer, and Russell Artzt, company co-founder and executive vice president of research and development. Of the total amount in question, Wang must return the majority.

Delaware Chancery Court issued a summary judg-ment in favour of the CA shareholders.

CA is considering an appeal of the judgment, the software vendor said in a statement issued last week. The judge's decision "would appear to run counter to reasonable expectations all the parties had when the [compensation] plan was approved by CA's shareholders", the company said.

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