PeopleSoft fires CEO Craig Conway

PeopleSoft's board replaced Conway with its chairman and founder David Duffield, who also is the Pleasanton-based company's largest shareholder. The board appointed Kevin Parker, PeopleSoft's chief financial officer, and Phil Wilmington, the company's top sales executive, as co-presidents. In a statement, PeopleSoft's board attributed the shake up to "a loss of confidence in Mr. Conway's ability to continue to lead the company." Conway, hired five years ago to replace Duffield as CEO, has been staunchly fighting to keep PeopleSoft out of Oracle's clutches for nearly 16 months. Almost as soon as Oracle launched its hostile takeover attempt, Conway defiantly dug in his heels, describing the bid as "atrociously bad behavior" and while lambasting Oracle CEO Larry Ellison as a sociopath. Conway formerly worked under Ellison at Redwood Shores-based Oracle, a dynamic that spiced a soap opera that has riveted Silicon Valley. Friday's move comes a week after PeopleSoft held a customer conference where Conway reiterated the company's resolve to resist Oracle's bid, which received a major boost last month when a federal judge rejected an attempt to block the proposed deal for competitive reasons. The court decision prompted many shareholders to begin pressuring PeopleSoft to open talks with Oracle. It's unclear how Conway's ouster might affect PeopleSoft's stance toward Oracle's bid. Ellison has repeatedly asked to meet with PeopleSoft to negotiate the terms of a bid that currently stands at $21 per share, but the board has refused throughout the battle. In Friday's statement, the company noted that all five members on the board committee that has unanimously rejected Oracle's offer remain in place. Duffield said he intends to focus on "a relentless commitment to our customers, and a renewed drive to keep PeopleSoft a great place to work for all employees." Oracle has indicated it will fire more than half of PeopleSoft's 11,500 employees if it buys the company. PeopleSoft acquired Denver-based J.D. Edwards Co. in August 2003 for $2 billion.