Oracle CEO Ellison's Compensation Falls, but Board Gives Him Thumbs Up

Oracle CEO's compensation falls 17%Oracle CEO Larry Ellison saw his compensation drop 17% this year, but the guy is far from being in the poor house. Ellison, who Forbes ranks as the sixth richest man in the world with a net worth of $28 billion, earned a total of $70.1 million during the past fiscal year.

And as in previous years, Ellison agreed to virtually forgo all of his base salary, taking home $1 in pay, according to Oracle's (ORCL) Securities and Exchange Commission filing on Tuesday.

Despite the overall drop in his compensation, Oracle's board remains pleased with their CEO's performance. According to their assessment in the SEC filing, they noted GAAP revenues, net income and earnings per share were all up by double digits. "Our financial performance was strong and superior to the financial performance of most of the peer companies against which we compare our executive compensation," the assessment said. "Consequently, our named executive officers each received cash bonuses above their target amounts."

Ellison's bonus reached $6.5 million, beating the target of $4.2 million. He was slightly more than three-quarters of the way to the maximum bonus of $8.3 million.

Meanwhile, Chuck Phillips, Oracle's former co-president, garnered $30 million in compensation this year, down approximately 13% from the previous year. Phillips, who announced his resignation earlier this week, is also departing Oracle a little on the light side. He's leaving behind 9.75 million in options that have yet to vest.

But his $30 million in compensation may help cushion that loss, as well as the $150,000 difference between his $800,000 base pay and that of Mark Hurd, former Hewlett-Packard (HPQ) CEO, who is replacing him as co-president with a base pay of $950,000.


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harley401k

You can take all the money in the world and didide equally amoung all of the people. In 15 years the rich will be rich again and then poor will be poor. The rich know how to invest and build.

September 08 2010 at 4:35 PM Report abuse +3 rate up rate down Reply
golfwebs

I worked for the Oracle Corporation for three years (and PeopleSoft USA for 3 years before Oracle purchased this company) and I personally met Larry Ellison one day back in 1999 at the building 7 parking lot in Redwood Shores, CA. I want to say that Ellison is one of the smartest people on Earth and he deserves every US $ paid to him. He and a team of three other people (Gupta from Kent State University) created the Oracle database or operating system product back in the late 1970's (based on IBM relational database book-Codd) and if you think that anyone could do this, why didn't you who comment about other people's money create a database product and become a billionaire in 30 years? It appears that everyone "thinks" that they should be paid millions of dollars for their work but they have not created any products and/or services that benefit customers. Customers who are more than willing to purchase these products for large sums of money. However, these are the same people that "resent" those people that do have the ability, intelligence, work ethic and drive to create products that people need and want. Larry Ellison is worth every dollar he is paid and no one should exhibit "envy" of rich people. There will always be a reason why certain people are paid what they are paid. It is foolish to assume that "rich" people do not deserve to be paid for their efforts and creations. If anyone wants to be "rich", go to any bookstore and purchase the Oracle database manuals for 10g or 11i and if you can learn about the Oracle database product, you can obtain a job at almost any Fortune 500 company for $100,000 plus $35,000 in benefits working as an Oracle database administrator (DBA).

September 08 2010 at 3:54 PM Report abuse +4 rate up rate down Reply
1 reply to golfwebs's comment
Rodger

Just look at Ellison's compensation and tell me the Shareholders are getting any thing that resembles a fair shake. They (shareholders get zilch while he has accumulated over 28 Billion??? Give me a break. These overpaid CEO's do not deserve anything near what they are paid as they return nothing to the shareholders in the form of a solid dividend. Why put money in a company that is sucked dry by the Management?

September 08 2010 at 3:41 PM Report abuse -1 rate up rate down Reply
Glorysten

I just want to no how & what degree you need to be a ceo of a company? to make that much money?

September 08 2010 at 3:11 PM Report abuse -1 rate up rate down Reply
1 reply to Glorysten's comment
tracvasquez

First you need to "know" the difference between "know" and "no"

September 08 2010 at 3:32 PM Report abuse +6 rate up rate down Reply