Is Larry Ellison Overpaid?
Sep 30th 2013 6:49PM
Updated Sep 30th 2013 6:50PM
Oracle may not be the the Rule Breaker it once was, but that didn't stop the company's board of directors from issuing CEO and co-founder Larry Ellison a massive $76.9 million pay package. It's more than he deserves, Fool contributor Tim Beyers says in the following video.
Just look at the current quarter. Revenue could decline as much as 4% or increase as much as 6%, management said in its guidance. Cloud-based competitors such as saleforce.com are taking a toll on Oracle's growth prospects. (Ironic, when you consider that Salesforce is also a partner.)
Ellison, for his part, turned down a bonus of $1.2 million because the company "did not meet" internal growth prospects. Yet he still received 7 million options at a weighted average exercise price of $29.72 a share. He'll earn millions on even modest gains in the stock price, Tim points out.
Is there a better way to structure Ellison's pay? One that's better aligned with the interests of outside shareholders holding for market-crushing gains? Tim answers this question and more in the video. Please click to watch now and then leave a comment to let us know where you stand.
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The article Is Larry Ellison Overpaid? originally appeared on Fool.com.Fool contributor Tim Beyers is a member of the Motley Fool Rule Breakers stock-picking team and the Motley Fool Supernova Odyssey I mission. He owned shares of salesforce.com at the time of publication. Check out Tim's web home and portfolio holdings or connect with him on Google+, Tumblr, or Twitter, where he goes by @milehighfool. You can also get his insights delivered directly to your RSS reader.The Motley Fool recommends salesforce.com and owns shares of Oracle. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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