DXC replaces CEO, Chair Mike Salvino

DXC Technology has replaced its chairman, president and CEO, Mike Salvino, with interim President and CEO Raul Fernandez, the Ashburn-based Fortune 500 IT company announced Wednesday.

Salvino had served as president and CEO since 2019 and as chairman since 2022. He will transition from his role as chairman effective immediately, and remain in an advisory role until March 31, 2024, “in mutual agreement with the board,” according to a news release.

Fernandez, who has been a member of DXC’s board of directors since 2020, is vice chairman and co-owner of Monumental Sports & Entertainment, which owns the NHL Washington Capitals team and the NBA’s Washington Wizards. The two teams are planning to move from Washington, D.C., to Alexandria in a $2 billion deal announced earlier this month. He also has served as CEO and founder of Proxicom and CEO of Dimension Data North America and ObjectVideo. Fernandez is also a director of Broadcom, an alternative governor for the NBA Board of Governors, a special adviser to Carrick Capital Partners and a member of Volition Capital’s strategic advisory board.

David Herzog, DXC’s lead independent director, has been named chairman of the board, which will conduct a search for a permanent CEO. Herzog has served on the board since 2017. He most recently served as chief financial officer and executive vice president of American Internal Group. Herzog is on the board of directors for MetLife and chairperson of its audit committee.

“It has been a privilege to serve as CEO for the last four years as we undertook a significant transformation journey at DXC,” Salvino said in a statement. “We achieved our goal of bringing stability to the business by cementing our financial foundation and assembling the right senior management team needed to drive better performance and deliver on the company’s strategic objectives moving forward. Raul and David are perfect leaders to oversee DXC into its next phase.”

Salvino was Virginia’s highest paid CEO in 2021, with a total pay of $28.7 million, a 32% raise from 2020. In 2022, he was the seventh highest paid CEO in Virginia, with a total compensation of $20.3 million.

In fiscal year 2023, DXC posted $14.4 billion in revenue, down from approximately $16.26 billion in FY22, which was an 8.26% decrease from its FY21 revenue of $17.73 billion. In 2020, DXC posted $19.57 billion in revenue.

In March, DXC, which as about 133,000 employees worldwide, rejected a buyout offer from a private equity firm, reported by Bloomberg as Baring Private Equity Asia.

Also in March, the U.S. Securities and Exchange Commission penalized the company for making “misleading” financial reports from 2018 to early 2020. DXC did not admit to or deny the charges but consented to a cease-and-desist order and agreed to pay an $8 million penalty.