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.