“Globes” has learned that Comverse Network Systems CFO Ailon Michaely resigned and will move to the parent company Comverse (Nasdaq: CMVT) in the US in a few weeks. Rumors about differences of opinion between Michaely and Comverse Network Systems (formerly CNS) CEO Zeev Bregman over Comverse’s future direction have recently been flooding the communications industry.
At this time, it is unclear what job Michaely will have at Comverse Technology; however given the fact that he is considered highly talented, it is hard to imagine Comverse Technology chairman Kobi Alexander foregoing his services.
An industry source believes that Comverse Technology CFO David Kreinberg will temporarily take over Michaely’s job, while keeping his own.
Industry sources say that Comverse usually fills managerial positions, especially senior executive posts, by promoting people from within the company. A few months ago, Comverse Network Systems CEO Itsik Danziger was promoted to the position of Comverse Technology president.
Michaely and Danziger worked closely together for many years, each one complementing the other. A communications industry source believes that it is a natural occurrence for a new CEO to implement new working methods and directions in a company, and when the new CEO is Zeev Bregman, the phenomenon is even more likely to occur.
“Bregman is considered an especially dominant figure in the industry, who prefers working with similarly minded people,” said the source. “In contrast, Michaely, who was one of Comverse’s founders, has fixed opinions of his own about where the company should go. It may very well be that differences of opinion arose between the two that would be very hard to settle in the long term."
“By the way, the rumor in the industry is that this was also the main reason for the resignation of Comverse Network Systems executive vice president Sachi Gerlitz, who was a close associate of Danziger and a very senior executive. He now works as a special technology advisor at Comverse Technology.”
Another source says, “Michaely was Danziger’s right hand for many years, and one of the men behind the company’s success. He is a part of Comverse’s infrastructure, along with Danziger and former Comverse Infosys CEO Carmel Vernia. After Danziger was promoted, it was very hard to imagine how Michaely could work under such a dominant manager like Bregman, who actually came to the company after he did."
“To solve the problem, and to avoid losing their most talented executives, Alexander creates a managerial echelon at Comverse Technology that will set strategy and the direction the company will take. There is no doubt that Alexander is the main manager and navigator for the Comverse group, and it is to his credit that he recognizes the value of his senior executives and their ability to lead the company (in reaching) the very ambitious targets the company set for itself.”
Published by Israel's Business Arena on 16 April 2001