The challenges keep coming for CA. A sweeping realignment of the sales team last week put Greg Corgan, executive VP of worldwide sales, on an already crowded exit ramp.
The company describes Corgan's departure, the fourth top exec to leave in 50 days, as a natural progression in centralizing the sales team. Corgan will be replaced by five executives reporting to recently promoted COO Michael Christenson. Former sales executive John Ruthven will be tasked with revamping the troubled administration of sales commissions. Two weeks ago, CA had to delay its quarterly earnings and restate third-quarter results because of faulty accounting of $70 million in commissions. According to a source familiar with the situation, a salesperson from an acquired company such as Concord Communications would make a sale, but a commission also would go to the CA person in charge of that account, even if they weren't involved in the sale.
Stronger controls could shore up the poorly designed commission plan. They'd better, since the company has to meet tight business-control measures by September or face prosecution as a result of an earlier $2.2 billion accounting fraud.
CEO John Swainson has called the evolution of the company's sales force "the biggest change that CA is making." The evolution continues.