Edited by Douglas Harbrecht

CANNAVINO CUTS IT SHORT AT PEROT SYSTEMS

After less than a year as president of Perot Systems Corp., James A. Cannavino abruptly announced his resignation on July 25. The former IBM strategist was wooed in 1995 to the privately held company by Chairman Mort Meyerson, who will take over Cannavino's responsibilities while the company, founded by Ross Perot, searches for a new chief.

One insider says Cannavino, 53, was a super salesman and recruiter of star talent but lacked the desire to focus on operational details that rapidly growing computer services company needs now. So Cannavino, who helped the Perot narrow its focus to key industries like financial services and health care, decided himself that it was time to leave. He informed a surprised Meyerson of his decision on July 24. Cannavino willl stay on for a short period to help with the transition.

Dallas-based Perot is still expecting to go public sometime in 1998. The company has more than doubled its revenue over the last two years, to about $600 million in 1996, on net income of $20.5 million vs. $10.8 million in 1995.

In an E-mail announcing Cannavino's departure to the troops, Meyerson praised Cannavino, once head of Big Blue's PC operations, for recently salvaging the megadeal that the company signed with Swiss Bank in 1995. The 25-year agreement has since been shortened to 10 years, with revenues staying at about $250 million a year. Cannavino could not be reached immediately for comment on his departure.

By Wendy Zellner in Dallas