Compuware ends consulting contract with co-founder Peter Karmanos
Compuware board says goodbye to Peter Karmanos after his comments on New York hedge fund
DETROIT – Peter Karmanos retired from the Compuware board this past March but has remained a paid consultant, receiving $600,000 a year.
It's fair to say that since his retirement Karmanos, the company's co-founder, has not been an ambassador for the current Compuware board and CEO Bob Paul. Two weeks ago, at the Detroit Goodfellows breakfast -- at which Karmanos was honored -- he told reporters this:
"Current management of Compuware needs to get their head out of their *** ... they have more responsibility than playing some kind of silly game with some jerks in New York City."
Karmanos was referring to a New York hedge fund attempting a buyout of Compuware. It's a deal he doesn't support, and if he were in charge he would " ... tell the hedge fund to go f*** themselves," he said.
Moreover, Karmanos said some members of the current Compuware management don't care about this community. In terminating the contract with Karmanos, company spokeswoman Lisa Elkin said, "Such disparaging and uninformed comments do not dignify a response."
Karmanos himself has long been a champion of community causes in Metro Detroit. Among his biggest projects is the Barbara Ann Karmanos Cancer Institute. His philanthropic work is part of the reason he was honored earlier this month.
"Because of the wonderful things he does for the city of Detroit. Certainly the support he gives cancer research, the hockey teams and Compuware is no small achievement either," said Frank Brady Jr., president of Detroit Goodfellows.
While Karmanos loses the $600,000 salary job, he does hold $4.8 million shares of Compuware stock, which should keep him off the unemployment line.
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