Xerox Taps Retired IBM Exec For Financial Post

Xerox Corp.

Zimmerman, 59, is to become senior vice president and chief financial officer, effective June 1. He retired in 1998 after a 31-year career with IBM.

He succeeds Barry Romeril, who retired at the end of last year.

The Wall Street Journal reported last month that Romeril and former Xerox Chairman Paul Allaire are targets of a Securities and Exchange Commission investigation into alleged accounting fraud at Xerox.

Xerox is paying a record $10 million civil penalty and revising financial statements back to 1997 as a result of that probe.

"Larry has a proven track record as an effective financial executive with balanced experience in global operations, strategic planning, accounting, and internal controls," Anne M. Mulcahy, Xerox chairman and chief executive, said Tuesday.

In addition to serving as the senior finance executive for the server division from 1996-1998, Zimmerman was vice president of finance for IBM's Europe, Middle East and Africa operations.

"Xerox's efforts in the past year to successfully restore its financial health are evidence of precise execution and an uncompromising resolve to move the business forward," Zimmerman said.

Earlier this month, Moody's Investors Service downgraded Xerox's rating by two levels. Moody's said its negative outlook was based on concerns about debt relative to cash flow from the company's core, non-finance business.

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