Cendant Errs

<B> Cendant Errs</B>

By Maria P. Vallejo

Cendant Corp. last week announced that it erroneously over-reported its 1997 earnings by $100-$115 million--a miscalculation that led to the firing of one senior executive, the naming of a new chief financial officer and an ongoing internal corporate investigation.

The discrepancy, stemming from the company's membership-club division, was discovered while Cendant was transferring accounting functions as it merged CUC International and HFS late last year. As a result, the company terminated its contract with executive vice president and CFO Cosmo Corigliano.

"We're outraged by the actions of a small number of former CUC employees who betrayed the trust that was placed in them by the company and our fellow shareholders," said Cendant president and CEO Henry Silverman.

Four days after firing Corigliano, Cendant named Michael Wargotz executive vice president of Cendant and CFO of the Alliance Marketing division, which includes the membership clubs and the selling of direct marketing services and products. Worgotz was formerly senior vice president of business development.