Kumar took over as chief executive in 2000 and chairman in 2002, the protege and hand-picked successor of Charles Wang, who founded CA in 1976.
Wang and Kumar bought the Islanders in 2000 for an estimated $190 million, and they also own the New York Dragons of the Arena Football League.
Kumar stepped down from his executive positions and the board of directors of CA. He will remain with the company in a new position of chief software architect.
Computer Associates’ lead outside director, Lewis Ranieri, is taking over as chairman, but the company expects to take “a few weeks” before naming an interim CEO, spokesman Dan Kaferle said.
Computer Associates, a $3 billion maker of software for corporate computing systems, is being investigated by federal prosecutors and the Securities and Exchange Commission for misrepresenting the timing of contracts in order to meet Wall Street’s quarterly expectations.
Ranieri said the decision for Kumar to step down was “fair and responsive to the situation.”
“The changes in Sanjay’s role are not based on the conclusion that he engaged in any wrongdoing,” Ranieri said in a statement. “Nonetheless, the conduct in question occurred during his tenure, and the board felt this action was appropriate.”
Four former finance executives have pleaded guilty to fraud or obstruction of justice charges, including the former chief financial officer