by CIO Staff

Dell Picks Chair of Board Audit Committee for CFO Post

News
Dec 20, 20062 mins
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Dell has picked an airline industry veteran to pilot the financial part of its technology business through turbulent times.

Dell Tuesday named Donald Carty as vice chairman and chief financial officer (CFO), replacing James Schneider, who previously announced plans to leave for the position of executive chairman of the board of Frontier Bancshares.

Carty has been a Dell director since 1992, and chair of its audit committee. He served as chairman of the board and chief executive officer (CEO) of AMR, the parent of American Airlines, from 1998 to 2003. He also served as CFO of AMR and president of AMR Airline Group and American Airlines.

The U.S. Securities and Exchange Commission began a formal investigation of Dell in November into certain accounting and financial reporting matters.

The Dell audit committee Carty chairs began conducting its own investigation in August 2005 after learning that the SEC had begun an informal investigation of the company’s revenue recognition and accounting practices for past fiscal years. Dell’s internal audit revealed that the company may have misstated prior financial reports, including accruals, reserves and other balance sheet items.

“Don has had a long association with the company and we are delighted that he is joining our senior leadership team,” said Michael Dell, chairman and founder of Dell, in a statement.

Dell reported improved earnings in third-quarter results on Nov. 21, compared to the previous year’s quarter, but the announcement had to be delayed by five days because of issues surrounding the accounting investigation.

-Robert Mullins, IDG News Service (San Francisco Bureau)

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