PeopleSoft CEO Is Opposed by Investor Advisory Group

Glass, Lewis & Co., which advises investors on proxy votes, recommended Wednesday that clients withhold their votes for PeopleSoft Inc. Chief Executive Craig Conway and two other board members.

The group also suggested that its clients support a shareholder proposal to require the business software maker to deduct the cost of stock options from its earnings. PeopleSoft has asked holders to vote against that proposal.

The proxy advisory firm cited Conway’s decision to resist Redwood City, Calif.-based Oracle Corp.’s $9.4-billion hostile takeover bid by offering customers rebates if a company buys PeopleSoft and stops developing and supporting its programs.

That plan would “hinder” a purchase of Pleasanton, Calif.-based PeopleSoft at a price that was in the best interests of shareholders, Glass Lewis wrote.

Oracle shares rose 15 cents to $11.85 and PeopleSoft shares dipped 28 cents to $18.69. Both trade on Nasdaq.