The tech company, formerly IBM’s managed IT services business, revealed Monday that its audit committee is reviewing the company’s accounting following voluntary document requests from the US Securities and Exchange Commission’s (SEC) Division of Enforcement.

According to a Monday SEC FilingThe company’s audit committee examines its cash management practices, related disclosures (including how it is presented in adjusted free cash flow), the effectiveness of internal control over financial reporting, and related matters in response to voluntary information requests by the SEC. This review has delayed the completion of the company’s quarterly report and internal control assessment, but at this time, the company does not expect any impact on its consolidated financial statements.

CFO David Wyshner and General Counsel Edward Sebold have left their positionseffective immediately, and Harsh Chugh has been appointed interim CFO. Bhavna Doegar was appointed interim corporate controller, and Mark Ringes, interim general counsel. The stock price was down more than 50% at the close of trading on Monday.

The news follows Kyndryl’s most recent earnings call, where the company highlighted improved contract signings and adjusted free cash flow as evidence of turnaround progress. That backdrop helps explain the sharp selloff: investor concern appears to be less about business performance and more about management, as questions about cash management, internal controls, and the sudden exit of executives.

Investors are understandably nervous when the CFO and general counsel leave, according to Shivaram Rajgopal, an accounting professor at Columbia Business School. “The red flags were that two senior executives responsible for the integrity of the financial statements were gone,” he told me. “What else do you look for? What does this say about internal controls across the company? Is it a rotten apple (isolated) or a rotten barrel (more systemic)?”

From turnaround story to control questions

Kyndryl, led by CEO Martin Schroeter, operates critical IT systems for financial institutions, airlines, retailers, and industrial companies. When Kyndryl was spun off by IBM in late 2021 and began trading on the New York Stock Exchange, the company was in the spotlight for delivering a turnaround story.

Being just below break-even in its first year means “we have a lot of work to do,” Wyshner, who joined Kyndryl in 2021, told me in a May 2025 interview.

The company makes its debut on the Fortune 500 in 2023. In 2025, it appears on the list of No. 265generating $16 billion in annual revenue by 2024.

Chugh, the interim CFO, joined the company in 2021 as COO and became global head of practices in corporate development and administration in January. He previously held leadership roles at IBM.

“Long term, Kyndryl needs a permanent CFO who is control-first and cash-disciplined, not just market-facing,” said Shawn Cole, president and founding partner of executive search firm Cowen Partners.

“The right profile has real accounting depth (preferably controllership- or chief accounting officer-caliber fluency), can pressure-test free cash flow mechanics, and install strong checks and balances across controllership, reporting, and management,” Cole told me.

In this context, he explained, the hiring of the CFO should be examined together with the broader financial leadership structure-controller and CAO strength, systems, and management-because the team and controls are already part of the question. The goal is not only the right leader, but a financial function that consistently produces numbers that investors can trust. He also said that the team should be evaluated as soon as possible.

cheryl Estrada
[email protected]

LeaderBoard-

Adrian Mitchell appointed CFO of Warby Parker Inc. (NYSE: WRBY), a direct-to-consumer lifestyle brand and eyewear company, effective February 10. Mitchell has more than 25 years of experience. Most recently, he served as chief operating officer and CFO of Macy’s, Inc., where he helped modernize operations by embedding AI-driven tools throughout the business. He was also previously CFO, COO and interim CEO of Crate & Barrel Holdings, where he led digital-first transformation.

Indraneel “Neel” Dev appointed EVP and CFO of WESCO International, Inc. (NYSE: WCC), a logistics services and supply chain solutions provider. He succeeds Dave Schulz, EVP and CFO, who expects to retire in May. Dev will join the company in February for a transitional period. Most recently, Dev served as CFO and chief revenue officer at Congruex LLC. Prior to that, he served as CFO of Lumen Technologies. He previously held various senior finance leadership roles at Level 3 Communications, MCI, and MFS Communications.

Great Deal

“The automation curve of the commercial agent” is a report by McKinsey which finds agent AI increasingly part of shopping, but not all transactions can be automated in the same way. The report examines what agents will handle and the situations that will require human involvement.

“This is the year that AI agents stop being an experiment and become part of how people shop, not in headline-grabbing ways but in everyday moments—helping shoppers identify options, assemble baskets, resolve trade-offs, and move toward action,” according to the report.

deepened

“Why the $2 trillion software stock wipeout didn’t destroy the AI ​​bull market” a luck article by Jim Edwards.

“The contrast between this week’s bullish rally and last week’s AI-induced sell-off could not be starker,” Edwards wrote. “To put it in perspective, $2 trillion was wiped off the market cap of software companies last week, which traders think could be wiped out by the AI ​​companies that will replace them.” Read more here.

Heard

“Define what teams can decide, what they can spend, and when they need to improve, then let them execute.

—Amy Eliza Wong, a Silicon Valley consultant, author, and keynote speaker, wrote a luck opinion piece titled, “The next 18 months of the agency era will feel like a slow-motion stress test for CEOs. Most will make the same critical mistake.”