Struggling software corporate Misys is in the early stages of a five year turnaround programme after instigating a sweeping boardroom reshuffle at the end of last year.

US import Jim Malone is the newest addition to the Misys team as the company embarked on another key stage of new chief executive Mike Lawrie’s efforts to orchestrate a turnaround of its fortunes.

What’s happened?

Misys announced this week that Malone had been drafted in to replace Howard Evans after the outgoing finance director appeared to have become another high-profile casualty of the failed management buyout last year.

Malone’s base salary will be £265,000 but his bonuses will be directly linked to the future performance of the company. ‘There will be on target annual bonus opportunity of 100%, rising to a maximum annual bonus opportunity of up to 150% of his salary.’ Misys said.

What’s going to happen?

When he starts next week Malone will have his work cut out keeping the Misys coffers in a healthy state. Under the terms of Misys’ strategic plan, Malone will have to deliver annual cost savings of £25m in 2008, rising to £40m per year from 2009.

This week the company also decided to sell off Sesame, one of its most profitable arms to Friends Provident. It expects gross proceeds in excess of £90m.

CEO Lawrie has said that Sesame is ‘a great business but it is not consistent with Misys’ strategy going forward,’ preferring to concentrate on driving growth and profitability in the core software and solutions businesses.

For the year ending 31 May 2006 Sesame reported revenues of £370m, so that will remove one prop to revenues going forward. The market may be unsure of what the future holds for Misys after the failed MBO last year, but Malone’s previous experience may reassure the doom-mongers.

At his last post, Malone oversaw a 33% rise in revenues for the first quarter of 2007 at US-based healthcare corporate the Trizetto Group, compared to the same period in 2006.

Despite the Sesame sale Misys’ net borrowings are expected to increase by ‘approximately £20m as a result of the transfer of cash balances.’ An optimistic Jim Malone said: ‘I am extremely excited to be joining Misys at this early stage of its turnaround programme.’