Hewitt Names BISYS Leader as CEO and Chairman

August 10, 2006 (PLANSPONSOR.com) - A prominent change in command affected the retirement services and HR sectors on Thursday as Hewitt Associates named BISYS leader Russell Fradin as its new chairman and chief executive officer.

A Hewitt announcement late Thursday said Fradin, who also has held executive positions with Automatic Data Processing and management consulting firm McKinsey & Company, will succeed current Chairman and CEO Dale Gifford, who has been with Hewitt since 1972. Gifford recently announced he would retire (See Hewitt Announces CEO Retirement .)

Meanwhile, the BISYS Board of Directors issued a simultaneous announcement noting that it had accepted Fradin’s resignation from the financial services outsourcer as president, chief executive officer and company director.

According to the BISYS statement, the company said it is “explor(ing) strategic alternatives as part of its continued effort to maximize shareholder value,” and that directors have hired Bear, Stearns & Co., to advise them on their next move.

With the Fradin departure, effective September 6, 2006, BISYS said Chairman Robert Casale will serve as interim president and chief executive officer while BISYS trys to find a permanent replacement. As part of that effort, the board has formed a search committee.

“Our Board of Directors and management continue to be sharply focused on addressing the challenges facing the Company, on doing what it takes to maintain stability within our business and on identifying and pursuing the path which best serves the interests of the company’s shareholders,” Casale said in the announcement.

BISYS 10-K Delay

BISYS also said Thursday that because of Fradin’s departure and the resulting likelihood that the CEO certification required by the Sarbanes-Oxley Act of 2002 for the BISYS Form 10-K for fiscal 2006 will not be available on a timely basis, the company expects its fiscal 2006 Form 10-K filing will be delayed beyond the normal filing date.

Finally, BISYS announced it has yet to complete its filing for Q3 fiscal 2006 and that it intends to provide additional information concerning the results for the full fiscal year, ending June 30, 2006, following the publication of its Q3 fiscal 2006 Form 10-Q.

class=”NormalDS”> Hewitt offers human resources outsourcing and consulting services via consulting with more than 2,400 companies and likewise administers human resources, health care, payroll and retirement programs on behalf of more than 350 companies. Located in 35 countries, Hewitt employs approximately 22,000 associates.