CSC chief Laphen to retire within a year
- — 19 October, 2011 19:50
CSC's Chairman and CEO, Michael W. Laphen, plans to retire from his position no later than a year from now, the company announced on Tuesday.
No successor has been named. Laphen, a 35-year veteran of the company, will stay on until a replacement is found but no later than Oct. 31, 2012. CSC has formed a search committee to find a candidate.
The 96,000-employee IT services company has been under pressure this year, with an ongoing investigation by the U.S. Securities and Exchange Commission related to possible fraudulent stock manipulation in the Nordic region. CSC financial statements have indicated the fraud was allegedly carried out by employees.
Laphen's announcement came on the same day as the resignation of CSC Denmark's CEO, Carsten Lind. No reason was given for Lind's resignation. He is expected to be replaced by John Walsh, a CSC vice president.
CSC's Denmark subsidiaries have lost money for five years, and Lind recently said "we, as a company, are facing big challenges that require the full attention of the management."
In the U.K., CSC remains involved in discussions over the fate of its role in the National Health Service's IT program, a complex IT modernization plan for the country's health services that was scrapped by the government in September.
The company is being sued by investors in the US. over the NHS debacle, with the Ontario Teachers' Pension Plan, a Canadian fund, alleging the company "fraudulently concealed" the performance of the contract from them and knew it couldn't be fulfilled.
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