DXC Technology CEO, president and chairman Mike Lawrie will be retiring from the company on 31 December with Mike Salvino being named as his successor.
Lawrie has held the top role since the company’s formation as DXC Technology in 2017 and according to a company statement, he has been discussing his succession and planned retirement with the DXC board for about a year.
Lawrie was previously the CEO of CSC and prior to that, he worked for UK-based IT solutions provider, Misys. He was also a partner with private equity firm, ValueAct Capital in San Francisco and was also the CEO of Siebel Systems. He also spent 27 years with IBM, where he held various senior executive roles.
“Mike Salvino is the perfect choice to lead DXC into its next phase of growth,” Lawrie said. “He is a proven leader with a strong track record of successfully running businesses, forging trusted client relationships, and creating an environment to grow and develop talent.
“It’s been my privilege to serve as CEO as we re-positioned DXC to focus on digital transformation and how we best serve clients.”
Salvino who joined the DXC board in May comes with 30 years of experience and most recently served as a managing director at private equity firm, Carrick Capital Partners.
He also spent seven years as group chief executive of Accenture Operations, and was a member of Accenture’s Global Management Committee.
“DXC has an enviable client portfolio, deep industry partnerships and a talented global team. I am looking forward to leveraging these strengths and my proven operational playbook to accelerate the execution of our growth strategy,” Salvino said on his appointment.
The technology giant attributed the plummet from its previous $377,000 profit to the costs associated with the merger between Computer Sciences Corp (CSC) and the enterprise services business of Hewlett Packard Enterprise (HPE), completed in April 2017.
The merger saw DXC pay $68.1 million in goodwill charges and restructuring costs of $56.2 million, adding up to $124 million in one-off expenditures and provisions.
According to DXC, the “significant restructuring activities” were undertaken to “simplify the current business model and create synergies across all service lines”.
Profit before tax would have reached $11.8 million, still a 60 per cent dip from the previous $29 million. The company paid $10.7 million in income tax within the financial period. The company also cited share transfers between XUK Holdco, ES Hague and Continuum Europe as hitting its profits for the financial year.
Globally, revenue was $35.8 billion (US$24.55 billion), decreasing by 3.3 per cent from the previous year.