Oracle’s Co-CEOs to receive Grants of 500,000 Stock Options

Oracle Headquarters in Redwood Shores, California

Oracle Headquarters in Redwood Shores, California

Oracle’s compensation committee has modified its executive compensation plan, tying pay packages more closely to the company’s performance giving in to pressure from shareholders lobbying and Larry Ellison’s call to take off as CEO.

Ellison in 2014 took home $67.3 million as compensation compared to $79.6 million a year earlier, following disapproval and concerns about the software company’s struggles against its smaller rivals. Mark Hurd and Safra Catz were both named as successors on Sept. 18, while Ellison became chairman and will assume the title of chief technology officer. Hurd will oversee sales, marketing and strategy, while Catz will remain CFO and manage legal and manufacturing divisions. According to an SEC filing, each future CEO received a one-time grant of 500,000 stock options and a performance-based stock award of 125,000 shares that will run in accord with their promotions.

According to a separate filing, Hurd and Catz earned $37.7 million each in fiscal 2014, compared to the previous year’s $44.3. Total pay for executives declined after the company missed some of its profit targets.

In a nonbinding vote, a year ago, Oracle shareholders dismissed the compensation packages of Ellison and other Oracle executives, after the suggestion by a proxy advisor that their remuneration didn’t match up to the organization’s overall performance. Oracle was additionally involved in a fight with CtW Investment Group (later named Change to Win) which scrutinized its compensation policies.

In fiscal 2015 Oracle is presenting performance stock units, which are granted to Ellison, Catz and Hurd focused around how well the company does as far as income stream and growth is concerned compared to other technology companies such as International Business Machines Corp., Hewlett-Packard Co., Cisco Systems Inc., EMC Corp., SAP SE, Salesforce.com Inc. and Workday Inc.

“You could argue that’s a somewhat representative set of companies that they compete with,” said Jack Andrews, an analyst at DA Davidson & Co,. Compensating the top executives according to sales and cash-flow growth against rivals is “better than a lot of companies that specifically reward according to EPS,” he said. “You can manipulate that.”

The company has also awarded performance stock units to Thomas Kurian, official VP of product development, and John Fowler, executive VP of systems. This will again, be in concurrence with the revenue stream and income growth within the company’s cloud and hardware divisions.

In a separate filing yesterday, Oracle said its annual meeting of stockholders will be held on Nov. 5 at their headquarters in Redwood City, California.

Christy Gren
Christy Gren is an Industry Specialist Reporter at Industry Leaders Magazine she enjoys writing about Unicorns, Silicon Valley, Startups, Business Leaders and Innovators. Her articles provide an insight about the Power Players in the field of Technology, Auto, Manufacturing, and F&B.

Recent Posts

Supply chain crisis bad news for automotive industry leaders

Supply chain crisis bad news for automotive industry leaders

The world’s biggest car companies are on track to lose production of 7.7 million vehicles in 2021. The forecast advices automakers on supply chain and other issues.
7 hours ago
Scammers dupe Apple fans with free bitcoin lure

Scammers dupe Apple fans with free bitcoin lure

Savvy scammers used a fake event stream, a fake Apple website, and the promise of free bitcoin to lure fans into opening up their wallets.
1 day ago
Japan’s MUFG offloads Union Bank to U.S. Bancorp for $7.3 billion

Japan’s MUFG offloads Union Bank to U.S. Bancorp for $7.3 billion

The total amount of cash to be received as part of MUFG Union Bank’s sale to Bancorp is $7.3 billion (800 billion yen).
2 days ago
Evergrande: A black swan event that could spook markets

Evergrande: A black swan event that could spook markets

EverGrande is now known as the “world’s most indebted property developer” and serves as a symbol of corporate excess.
3 days ago
Moderna vaccine more effective than Pfizer, study says

Moderna vaccine more effective than Pfizer, study says

Moderna’s Covid-19 vaccine does a slightly better job of preventing coronavirus-related hospitalizations and emergency department visits.
5 days ago
iPhone 13 and iPhone 13 Pro: Specifications, Release Date, Features and much more

iPhone 13 and iPhone 13 Pro: Specifications, Release Date, Features and much more

Apple iPhone 13 Pro and iPhone 13 Pro Max can be a hit with its ever new technology A15 Bionic chip and other cool profound features.
6 days ago