Tuesday, 28 August 2012

CSC continues its senior management clean-out


CSC continued its senior management clean-out by removing Donald DeBuck from his position as Vice President & Controller.

 
He will be replaced by Thomas Colan who is joining CSC from Discovery Communications where he served as Controller, having earlier been Controller of AOL/Time Warner.  Colan will report to CSC Chief Financial Officer Paul Saleh.


Further details, including Colan’s  remuneration package, are shown in CSC’s SEC filing on


 
DeBuck will apparently stay with the company with the role of  “supporting the CFO’s systems enhancement activities”.  We do not know whether this is a real position or just a nice title and a way of allowing DeBuck to quietly leave the company with dignity in a few months.


DeBuck has served as Corporate Controller for about a decade, during which time CSC has suffered major accounting irregularities principally in Europe. He is a named defendant in Class Action lawsuits brought against CSC and some of its officers.   His departure is no real surprise. Many people in CSC wonder how the Chief Accounting Officer survived so long after the disclosure of these irregularities. 

 
Maybe former CFO Mike Mancuso wielded the real authority inherent in the position of Controller and Chief Accounting Officer.  If this was the case, it is hard to see how CSC could have terminated DeBuck for failing to prevent the accounting irregularities without first firing Mancuso. That DeBuck is apparently staying with CSC suggests that CEO Mike Lawrie believes there are some mitigating circumstances in his favor.


Another recent senior executive departure is that of VP Investor Relations Bryan Brady. We understand that, unlike DeBuck, Brady was given no option to remain with the company. 

Mr. Brady had been the Head of Investor Relations for 3 years, having earlier served as VP Finance for Europe from 2002 to 2009, during which time many Country Finance Heads left the company.  Apparently not many tears have been shed in CSC over his departure. We are told that he was viewed by many of his colleagues as being difficult to work with.  His term as Head of Investor Relations had been defined by CSC’s investor communications around its profit warnings, NHS fiasco and share price collapse,  which we have described in earlier blog  postings as a mixture of confusing waffle and unjustified optimism.  CSC’s mishandling of the Investor communications of these problems harmed the company’s image on Wall Street and destroyed whatever credibility Brady had with the analyst community and within CSC.   

We do not know how many more senior CSC managers CEO Mike Lawrie intends to remove.  But all the highly paid CSC executives who just kept quiet as Mike Laphen mismanaged the company  close to ruin  deserve whatever Lawrie hands out to them.

5 comments:

Anonymous said...

It is good to see that CSC has finally addressed the Brady situation. But why did it take them over 10 years?

Anonymous said...

Good to see Brady had gone as anyone who had the misfortune to work with him will attest.

He too often exemplified the worst in Finance management - power for power's sake.

Anonymous said...

In relation to CSC,s current downsizings, the following seems relevant.

It's about those people who say they are giving more than 100%?

We have all been

to those meetings at CSC where some manager wants you to show your commitment to the cause by giving over 100%.

How about achieving 103%?

What makes up 100% in life?

Here's a little mathematical formula that might help you answer these questions:

If:
A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

Is represented as:
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26.

Then:

H-A-R-D-W-O-R-K
8+1+18+4+23+15+18+11 = 98%

And

K-N-O-W-L-E-D-G-E
11+14+15+23+12+5+4+7+5 = 96%

But,

A-T-T-I-T-U-D-E
1+20+20+9+20+21+4+5 = 100%

And,

B-U-L-L-S-H-I-T
2+21+12+12+19+8+9+20 = 103%

AND, look how far ass kissing will take you.

A-S-S-K-I-S-S-I-N-G
1+19+19+11+9+19+19+9+14+7 = 118%

So this will explain why many people who are respected by their colleagues and peers are being fired, and why many managers who are not respected at all are keeping their jobs in CSC;

Anonymous said...

On CSC's internal C3 site, one the Lawrie's themes you see is 'Forward Together'. My job is being 'Offshored' soon, so I guess it's 'Forward Together' as long as CSC can't save money by firing you.

Anonymous said...

German CSC CEO, Gerhard Fercho, is also involved in a law suite: http://nachrichten.rp-online.de/wirtschaft/krach-bei-olympia-dienstleister-atos-1.3057779

This article reports on him for giving false testimony in a case about a consulting contract during his time at ATOS Origin, before joining CSC.
A former partner accused ATOS having not payed him a contracted 24 million € consulting fee, signed by Fercho.
Fercho rejected the existence of any contract signed by him and stated the contracts presented by his opponent as forgery.
A german law didn't believe his testimonial and Fercho was sentenced for 5 month on probation in 2011, but his attorneys appealed against it, so the verdict has not become effective yet.
The trial goes on in 2012, but already put some image damage on german CSC.