CEO Craig Conway, fired earlier this month, will have his landing cushioned by an $18 million severance payment.
Documents filed by the company with the
Securities and Exchange Commission
on Monday spelled out a $3.2 million cash payment for the ex-CEO, and a source familiar with the deal said that other provisions mentioned in the filing, but not detailed, add almost $15 million more to the package.
The company also said that it will pay Ram Gupta, the former executive vice president of products and technology, about $949,000. Gupta departed shortly after Conway, but it isn't known whether he was fired or left on his volition.
The reason's for Conway's
sudden dismissal are not entirely clear. PeopleSoft board member Steven Goldby said during the trial of a lawsuit against the company that Conway had misled investors about the impact the hostile takeover bid by
was having on PeopleSoft. He indicated that there were other reasons, including the breakdown of communications between Conway and other top executives. It is widely believed that Conway's vehement opposition to the $21-a-share offer contributed to his firing, but no one from the company has publicly confirmed that supposition.
The suit is an attempt by Oracle to remove PeopleSoft's antitakeover defenses. Testimony in the trial ended last week. A verdict by a Delaware judge is pending.