Peace steps aside as chief of group he founded

By RICHARD PAMATATAU

Brian Peace has been replaced as chief executive of Peace Software, the company he founded in Auckland 20 years ago.

His successor is former Oracle and Apple executive Sebastian Gunningham, who was appointed to the Peace board last November.

Peace, who lives in Miami, said he had courted Gunningham for nearly four years and the appointment would allow him to focus on sales, particularly into the potentially lucrative European market where the company had failed to make progress.

Speculation that the reshuffle was prompted by the software company's US investors was unfounded, said Peace.

"This [new] role suits me down to the ground," he said. Stepping aside as CEO was a relief now that he had hired a suitable replacement, he said.

Peace remains a director and is still the biggest shareholder of the company, according to Companies Office filings. He is not listed as an executive on the company's website.

Other significant shareholders are Insight Capital Partners of New York and Maryland-based Kinetic Ventures.

Jerry Murdock of Insight is chairman of Peace. Peace Software makes billing systems for energy companies and was touted by the Government as a potential $100 million company in the IT sector.

The growth of Peace is hard to estimate because its last reported accounts were for the year to December 31, 2001, when revenue was US$29 million with profit of US$2.8 million. The previous year's figures were a loss of US$0.9 million from revenue of almost US$13 million.

Last month the company said it was laying off 40 staff, mostly in Auckland, bringing its worldwide workforce to about 375.

Peace said he had wanted Gunningham as chief operating officer as the company was gearing for an IPO three years ago.

The slump of the capital markets and September 11 put paid to that.

"It is a credit to a New Zealand software company that someone like him would come on board."

Peace would not reveal salary arrangements or how many shares Gunningham had been given as part of his welcome package.