Computer Associates 2007 Annual Report Download - page 5

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3
Closing a Chapter on CA’s Past
Another topic of importance is the company’s conclusion of the Deferred Prosecution Agreement
(DPA) and the release of the report of the Special Litigation Committee (SLC) of the Board of Directors.
These events are benchmarks in our quest to put the company’s past behind it so that we can fully
devote ourselves to our mission of transforming the way the world manages Information Technology (IT).
CA entered into the DPA in September 2004, in which it agreed to make specifi c changes to its
management, governance and business processes. Part of that agreement was the appointment of
an independent examiner (IE), who was charged with reporting back to the government on the
company’s progress.
Over the past two years, the IE has been part of the fabric of the company, attending management
and board meetings, talking to individuals throughout the organization and pursuing various inquiries.
On May 1, 2007, he submitted his fi nal report. Based on that report, the government advised the Court
that CA had complied with the DPA, and the Court, in turn, dismissed all pending charges against the
company. For those of us who’ve lived through this challenging time, the end of the DPA is cause not for
celebration but for reaffi rmation of our fi erce commitment to upholding the highest standards of ethical
and professional conduct throughout our organization — which is the soundest means of ensuring that
nothing like this ever happens again at CA.
The SLC’s report is rooted in the same history, although it deals with different aspects, including the
derivative litigation based on the company’s past issues. Two independent directors, then new to the
company and thus uninvolved in the historical problems, spent more than two years studying the issues
and in April released their report, which included recommendations to the courts as to the disposition
of these derivative lawsuits.
As I write this, the company is waiting for court rulings regarding the SLC report and is looking forward to
closing this chapter of its past. As I said to our customers at our CA World® conference in Las Vegas in
April, CA is not the same company it was fi ve years ago, or even 18 months ago. We have changed most
of our major processes, many members of the leadership team, and we’re implementing the strategy for
market leadership we call Enterprise IT Management, or EITM.