IT management software maker CA Technologies (CA: Quote) said Wednesday that its Board of Directors has elected software and IT services industries veteran Michael Gregoire as the company's new chief executive officer, effective January 7. He has also been elected to the CA board.
Gregoire will succeed the 70-year old William McCracken, who has served as the Islandia, New York-based company's CEO since January 2010 and will be retiring effective March 31. McCracken also will leave the CA board effective January 7.
McCracken will continue to lead the company until Gregoire joins on January 7. He will assist Gregoire in the transition until his retirement. The company also said it has entered into a consulting agreement with McCracken to further help with the transition through the end of 2013.
Gary Fernandes, the director who led the CA board's search committee, said, "The Board followed a vigorous search process during the past six months. As the search progressed, it became clear to us that Mike Gregoire is exactly the kind of leader CA Technologies needs."
Gregoire, 46, most recently served as chairman, president and chief executive officer of cloud-based talent management software firm Taleo Corp., which was acquired by enterprise software giant Oracle Corp. (ORCL) for $1.9 billion earlier this year.
Before joining Taleo, Gregoire served as an executive vice president for four years at PeopleSoft, Inc., which was also acquired by Oracle in January 2005. He also spent 12 years at EDS Corp., which was eventually bought by PC maker Hewlett-Packard Co. (HPQ).
Under the employment agreement with CA, Gregoire will be paid an initial base salary $1 million per annum, payable in cash.. He will also be eligible to receive a target annual cash bonus of 150% of his annual base salary and a target long-term incentive performance award of at least $5.5 million, subject to the terms and conditions of the company's annual performance bonus and long-term incentive performance programs, respectively, and subject to reduction in connection with a proportionate reduction affecting target levels for the company's other executive officers.
In connection with his commencement of employment, Gregoire will be awarded sign-on equity grants of $3 million in stock options and $2 million in restricted stock units, both of which will vest 34% on January 7, 2014 and 33% on each of January 7, 2015 and January 7, 2016.
Gregoire will also be paid a cash sign-on bonus of $500,000, in lieu of an annual bonus for the company's 2013 fiscal year and to help offset his expenses associated with his relocation to New York and negotiation of the employment agreement.
CA shares, which have traded in a range of $19.80 to $28.00 in the past year, closed Wednesday's regular trading session at $21.85, down 24 cents or 1.09%. The stock is gaining 18 cents or 0.82% in after hours trading.
by RTT Staff Writer
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