Dell Names Carty Finance Chief

Dell(DELL Quote - Cramer on DELL - Stock Picks) replaced its head of finance Tuesday, as the PC maker continues to grapple with a government investigation into its past accounting practices.

Donald Carty, a director at the Round Rock, Texas company, will take over as chief financial officer Jan. 1. He will replace James Schneider, a former partner at accounting firm Price Waterhouse, who joined Dell in 1996.

According to Dell, Schneider recently agreed to become executive chairman of the board of Frontier Bancshares.

Carty, a former CEO of AMR(AMR Quote - Cramer on AMR - Stock Picks), which operates American Airlines, has sat on Dell's board since 1992.

"Don's remarkable management experience and his strong understanding of our company make him an ideal candidate to help lead our Dell 2.0 initiative," said Dell CEO Kevin Rollins in a statement.

The CFO shuffle is the first sign of change in Dell executive suites since the PC maker disclosed that government regulators were looking at its books.

In the past several weeks, Dell has delayed its quarterly earnings report as a result of the accounting issues and said that the Securities and Exchange Commission has launched a formal investigation into the matter.

Thomas Luce, another board member, will replace Carty as head of the board audit committee conducting Dell's internal inquiry into the accounting issues. Dell said that Carty will continue to serve on the board and work with Luce and the audit committee on the ongoing investigation.

Shares of Dell were up 12 cents at $26.25 in extended trading Tuesday.