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October 19, 2004 12:42 am

Ex-PeopleSoft CEO to get $18 mln in severance-source

Reuters
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Former PeopleSoft

Conway, who was fired after the board lost faith in his ability to lead the business software maker as it fights Oracle Corp.?s $7.7 billion hostile takeover bid, will receive benefits that include cash and the value of his stock options, the source said.

PeopleSoft had no official comment about the package but earlier Monday PeopleSoft said in a filing with the U.S.

Securities and Exchange Commission that Conway would receive receive a lump sum payment equal to $3,207,766.33.

PeopleSoft said the amount ?equates to the company?s obligation for continued payments of 24 months base salary and 24 months target bonus discounted to net present value.?

A PeopleSoft board member said about two weeks ago that Conway was fired, in part, after he misled Wall Street analysts by saying Oracle?s

At the time of his departure, announced Oct. 1, PeopleSoft said Conway was fired after ?a loss of confidence? in his ability to lead the company, based in Pleasanton, California.

PeopleSoft?s board named company founder Dave Duffield as the new chief executive and Kevin Parker and Phil Wilmington as co-presidents.

Oracle?s takeover offer got U.S. court approval in September after a judge rejected the U.S. Justice Department?s antitrust concerns.

European Union antitrust regulators have yet to make a final ruling on Oracle?s proposed takeover, which could result in up to 10,000 job cuts at PeopleSoft.

In September, PeopleSoft boosted compensation packages for all employees except Conway to help retain employees amid the company?s takeover fight. The increased employee compensation package was valued at about $200 million.

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