BOSTON (Reuters) – CA Inc. removed its top sales executive from his post Monday in what it said was part of a restructuring, a week after the business software maker said it found irregularities in how it accounted for sales commissions.
Executive Vice President Gregory Corgan had been chief of CA’s worldwide sales since 2004.
Company spokesman Dan Kaferle said Corgan ‘s position was eliminated as part of a restructuring of the sales force. He declined to elaborate.
Last week, CA said errors in accounting for sales commissions would result in its restatement of results for its fiscal third quarter and a delay in reporting fourth-quarter earnings. It blamed what it called a “material weakness” in its ability to track commissions.
Analysts said they had expected changes in CA’s sales team after last week’s announcement.
“His departure is not a surprise given what appears to be a gross mishandling of sales operations functions like setting the commission plan and then actually paying sales reps their commissions in a timely fashion,” Cowen & Co. analyst Walter Pritchard said.
Corgan did not return calls seeking comment.
Islandia, New York-based CA said that Corgan ‘s duties would be assumed by five executives reporting to the chief operating officer. One of those executives will be responsible for supervising administrative tasks including tracking of sales commissions.
CA shares were off 5 cents at $21.58 in early afternoon trading Monday on the New York Stock Exchange.
Corgan ‘s departure comes on top of the recent loss of three key executives.
Chief Executive John Swainson is trying to turn around the struggling software maker after five straight years of losses and recent executive suite turmoil that has seen the departure of CA’s chief operating officer, chief financial officer and chief technology officer.
Swainson has been with CA since 2004, the year that former CEO Sanjay Kumar left the company and was indicted for his role in a $2.2 billion accounting scandal. Kumar originally said he was innocent of any wrongdoing but in April pleaded guilty to securities fraud, perjury and obstruction of justice charges.
As Swainson’s turnaround efforts have yet to result in sustained profitability, the stock has languished, falling about 21 percent over the past year.
Competitor International Business Machines Corp. has seen its share rise about 3 percent during the same period, while rival BMC Software Inc.> has climbed 19 percent and Compuware Corp..O>, another business software maker, is up about 6 percent.