CFO.com- Ceridian Corporation, the scandal-plagued payroll-services company, announced on Monday that it had fired Gary Krow, the president of its thriving Comdata division, for disclosingconfidential information to Pershing Square Capital and “unauthorized meetings” with the hedge fund.
The company’s board learned about Krow’s alleged misconduct through documents and testimony provided in a lawsuit by Pershing Square, according to a Ceridian press release. The hedge funds’ prominent founder, William Ackman, sued Ceridian in Delaware Chancery Court on March 7. Pershing demanded that the company let him view and distribute the full contents of two letters he claimed that the executives had sent to the board that allegedly criticized the company’s previous chief executive officer, Ronald Turner, and the board’s ability to rein him in. On May 11, 2007, the court denied Pershing Square’s request.
The two executives, Pershing Square says in a release, were Krow and former Ceridian CFO Doug Neve. Krow, whose number at Ceridian had been disconnected, could not be reached at presstime. Pershing Square said it was “disappointed but not surprised” at the firing of Krow, who was also an executive vice president of the company. A Ceridian spokesman said that the company had no comment on Pershing’s response.
