Oracle scoffs at charge that Ellison is overpaid

CEO Larry Ellison earned $76.9 million in Oracle's fiscal 2013

Oracle has fired back against charges by a shareholder advisory group that CEO Larry Ellison's compensation is excessive given the company's performance and when compared to other tech company CEOs.

Ellison receives a US$1 salary, taking the remainder of his pay as stock options. In Oracle's past fiscal year, Ellison took home US$76.9 million but declined to take a bonus.

Last week, CtW Investment Group sent a letter to Oracle compensation committee chairman Bruce Chizen, criticizing Oracle's "top-heavy" executive compensation practices and saying Ellison's pay "far outstrips" his peers. CtW represents union pension funds that are "substantial" Oracle shareholders.

Oracle general counsel and secretary Dorian Daley responded to CtW in a letter filed with the U.S. Securities and Exchange Commission on Wednesday.

"Your nine page letter purports to lay out the case why Mr. Ellison's pay package is excessive, but any thoughtful review of your letter, as we made, actually makes the opposite case - that Mr. Ellison's pay package is appropriate under the circumstances," Daley wrote. "Alarmingly, your letter includes a collection of misleading statements, snippets of media reports, and broad comparisons that distort the situation."

Oracle's board believes the company is one of the "best-managed companies in the technology sector," Daley wrote.

In addition, Ellison "remains its most critical strategic visionary" and his compensation is an "extremely low price to pay to continue to procure the leadership services of one of the world's foremost pioneers in the field of information management technology," Daley added.

There have been times when Ellison's stock option grants have "expired worthless," and other occasions when grants have "performed well -- aligning his interests directly with the interests of all Oracle shareholders," Daley wrote.

The subject of Ellison's and other Oracle executives' pay has come up on a number of previous occasions. Last year, shareholders voted against Oracle's pay practices in a non-binding measure. They will receive a similar opportunity at Oracle's upcoming shareholder meeting on Oct. 31.

Chris Kanaracus covers enterprise software and general technology breaking news for The IDG News Service. Chris' email address is Chris_Kanaracus@idg.com

Join the newsletter!

Error: Please check your email address.
Rocket to Success - Your 10 Tips for Smarter ERP System Selection

Tags Oraclebusiness issuesservicessoftwarefinancial resultshardware systemspersonnellarry ellisonSEC Filings

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Chris Kanaracus

IDG News Service
Show Comments

Cool Tech

Breitling Superocean Heritage Chronographe 44

Learn more >

SanDisk MicroSDXC™ for Nintendo® Switch™

Learn more >

Toys for Boys

Family Friendly

Panasonic 4K UHD Blu-Ray Player and Full HD Recorder with Netflix - UBT1GL-K

Learn more >

Stocking Stuffer

Razer DeathAdder Expert Ergonomic Gaming Mouse

Learn more >

Christmas Gift Guide

Click for more ›

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Edwina Hargreaves

WD My Cloud Home

I would recommend this device for families and small businesses who want one safe place to store all their important digital content and a way to easily share it with friends, family, business partners, or customers.

Walid Mikhael

Brother QL-820NWB Professional Label Printer

It’s easy to set up, it’s compact and quiet when printing and to top if off, the print quality is excellent. This is hands down the best printer I’ve used for printing labels.

Ben Ramsden

Sharp PN-40TC1 Huddle Board

Brainstorming, innovation, problem solving, and negotiation have all become much more productive and valuable if people can easily collaborate in real time with minimal friction.

Sarah Ieroianni

Brother QL-820NWB Professional Label Printer

The print quality also does not disappoint, it’s clear, bold, doesn’t smudge and the text is perfectly sized.

Ratchada Dunn

Sharp PN-40TC1 Huddle Board

The Huddle Board’s built in program; Sharp Touch Viewing software allows us to easily manipulate and edit our documents (jpegs and PDFs) all at the same time on the dashboard.

George Khoury

Sharp PN-40TC1 Huddle Board

The biggest perks for me would be that it comes with easy to use and comprehensive programs that make the collaboration process a whole lot more intuitive and organic

Featured Content

Product Launch Showcase

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?