RSS
Логотип
Баннер в шапке 1
Баннер в шапке 2
2018/08/02 13:02:33

Top managers of Oracle their income

.

Content

2016: Ellison income - $41.5 million (-35%), Hyord and Katz - for $41 million (-23%)

In September, 2016 the Oracle company opened the income of the top managers. Payments were reduced by it because of big bonuses the previous year and review of the scheme of formation of remunerations.

According to the Bloomberg agency with reference to the documents provided to Oracle U.S. Securities and Exchange Commission (U.S. Securities and Exchange Commission, SEC), in 2016 financial year which came to the end at the end of May of the 2016th calendar earnings of the cofounder of the company Larry Ellison on a post of the chairman of the board of directors and technical director made $41.5 million that is 35% less, than the previous year. Its salary remained symbolical — $1.

Payments to Larry Ellison were reduced by 35%

Safra Catz and Mark Hurd compensation packets decreased by 23% — to $41 million at each of the CEOs of Oracle. This recession happened in many respects because of that what in 2015 to heads was issued by $9 million remunerations in the form of actions for joint position assignment of the CEO. Catz and Hurd basic salaries made $ 950 thousand that corresponds to indicators of year prescription.

In documents for SEC it is also said that in 2016 to a fiscal year Larry Ellison spent additional $1.5 million for ensuring own security at the expense of the employer. Similar flows of Mark Hurd were measured by $176.2 thousand.

For reporting year the number of the stocks of Oracle belonging to Larry Ellison and pledged for a design of the credits increased by 15 million pieces and reached 315 million (in money it is about $12.4 billion). The fortune of the co-founder of software corporation by September 23, 2016 is estimated in $43.1 billion, data of the index of billionaires of Bloomberg demonstrate.

In September, 2016 Oracle published changes in practice of compensation. The company reduced number of options on stocks for heads and began to pay remunerations in the form of securities on the basis of financial results of work of Oracle. Besides, completion date of options top managers — up to five years was half reduced.[1]

2015

Ellison - $62.1, Hyord and Katz - for $56.9 million

On September 25, 2015 it became known of reduction of income of the highest paid top managers of Oracle. It is connected with the fact that the company instead of options began to provide to the heads actions, payments for which depend on revenues of the producer.

According to the results of 2015 financial year closed on May 31 the 2015th, the founder of Oracle Larry Ellison who in 2014 resigned authority of the head of the company, having taken a position of the technical director, earned $62.1 million against $100 million the previous year, reported in the Bloomberg Pay index which authors trace the income of the most highly paid American top managers.

The income of top managers was reduced because instead of options Oracle began to distribute actions, payments for which depend on financial results of the company,

Payments to Mark Hurd and Safra Catz who after Ellison resignation from a post of the CEO divided this position among themselves made approximately $56.9 million whereas in 2014 financial year it was talked of the remunerations exceeding $70 million.

Until the end of 2014 Larry Ellison received symbolical salary ($1 a year), and the most part of a compensation packet fell on options. After its departure from the job of the CEO the company introduced a payment system actions with restrictions of the address which are tied to the amount of sales and a cash flow from operations in relation to competitors, such as IBM, Intel and Salesforce.com. Payments for such securities are possible within four years on condition of accomplishment of financial tasks, notes the Bloomberg agency.

In 2015 financial year issued to Larry Ellison the purchase option of 3 million stocks of Oracle with the strike price of $38.89-40.47 against 7 million securities the previous year. Options cut down to Safra Catz and Mark Hurd from 5 to 2.75 million actions. Before the average price of options exercise was measured in Oracle by $43.49.

Safra Catz and Mark Hurd's compensation packets in 2015 financial year included salaries in the amount of $950 thousand and also other payments in $20,795 and $22,253 respectively which include legal expenses on the help in holding political campaigns, etc.

Larry Ellison spent additional $1.53 million for security of the house at the expense of the employer. As of September, 2015 the status of the founder of Oracle is equal about $40 billion that allows it to be in number 10 of the richest people of the planet.[2]

Reduction of options to top managers

Oracle reacted to discontent of shareholders with high income of leading employees

On July 7, 2015 it became known of reduction of the share options of top managers of Oracle. Thus, the American corporation reacted to discontent of shareholders with high income of leading employees.

According to the The Wall Street Journal (WSJ) newspaper with reference to documents which Oracle provided the U.S. Securities and Exchange U.S. Securities and Exchange Commission in 2016 financial year (began on June 1 the 2015th) chief executive officers Safra Catz and Mark Hurd and also the founder and the executive chairman of the board of the company Larry Ellison received approximately the same number of shares within options, as before, however the term of their execution is reduced twice — from 10 to 5 years.

As a result of it the cost of options of heads noticeably decreased. For example, in the financial year which came to the end on May 31, 2014 Larry Ellison earned from options exercise $65 million a Year later this financial indicator decreased to $46 million. In the summer of 2015 it received the option from 2.25 million shares estimated at $22 million. It should be noted that for many years when Ellison ran Oracle, he was considered as one of the highest paid CEOs in the United States.

The cost of options for 2.25 million actions provided to Safra Catz and Mark Hurd at the beginning of July, 2015 is estimated by $22 million at everyone. The previous year the board issued to these directors of 2.75 million actions, including the single options from 500 thousand securities provided in September, 2014 as a result of their promotion.

The share purchase options — the most widespread method of encouragement of the American top managers. This financial instrument grants the right to purchase or sell an asset at the predeterminated price at a given time.

Observers of WSJ note that shareholders and the organizations exercising corporate control criticized Oracle for excessively high payments to top managers more than once. Reduction in cost of options signals that the Board of Directors at last reacted to complaints.[3]

The ex-United States Secretary of Defense and the director of CIA joined the board

Leon Panetta

In January, 2015 the Board of Directors of Oracle company expanded the number of participants to 12, having elected the new member — to them there was the former United States Secretary of Defense, in the past the director of CIA Leon Panetta[4]. All board members of Oracle are elected for one year.

2010: The former head of HP Mark Hurd is appointed the president of Oracle instead of Charles Phillips

In September, 2010 the former head of Hewlett-Packard Mark Hurd is admitted to Board of Directors of Oracle and appointed the president of this company. He reports to the chief executive officer of Oracle Larry Ellison.

"Mark did brilliant work in HP and, I think, in Oracle it will achieve still big results, - the head of Oracle commented on joining of the friend Heard. - In the IT industry there is no person with more suitable skills for the selected Oracle of strategy, than Mark".

Ellison means integration of hardware solutions and software and release of end complex corporate products by the selected strategy. Also greeted Heard's joining to Oracle Safra Catz which also holds a position of the president of Oracle. According to Heard which are given in the official statement, together they will be able to bypass IBM in the markets of servers and storage systems.

In a week after news of Heard's resignation the founder and the head of Oracle Larry Ellison sent the letter in which he criticized behavior of Board of Directors of HP to edition The New York Times. "This coward decision which was made by the company management which is too strongly concerned by the reputation", - the billionaire said, having added that all people and partners connected with HP will suffer from this act. HP is the world's largest producer of personal computers, servers and storage systems.

Meanwhile, together with Mark Hurd's appointment Oracle announced resignation of Charles Phillips who is together with Safra Ketts the second president of corporation. Phillips who joined Oracle in 2003 announced Ellison desire to leave the company in December of last year then the last asked it to remain before completion of the transaction on merger of SUN Microsystems. Let's remind that it was made in January, 2010.

File:Aquote1.png
"We will lack Phillips together with his talent and leadership skills", - Ellison commented on his leaving in the official statement.
File:Aquote2.png

The reason of the solution of Phillips is not stated.

On September 7, 2010 it became known that Hewlett-Packard filed a lawsuit against the former head Mark Hurd next day after the declaration of its accession to Oracle as the president and the board member. HP is afraid that through Hurd Oracle will be able to learn about confidential information. Moreover, are convinced of the company that Hurd just will not be able qualitatively to execute the duties in Oracle if is not guided by information obtained on a prior workplace. Hurd signed the corresponding nondisclosure agreements of a trade secret with HP in 2008, and then in 2009 and 2010. They oblige to announce employment in the competing company not less than in a year before. Hurd was also obliged to provide to the former employer convincing arguments about security in relation to HP of transition to the new company, but did not make it.

In Heard's protection the chief executive officer of Oracle Larry Ellison who criticized Heard's resignation earlier stood up, having called the HP decision made by Board of Directors "coward". "Oracle long time considered HP the important partner, - Ellison said. - However this vindictive claim threatens our relationship... Actually the board of HP destroys a possibility of cooperation between our companies in IT market".

Within the cooperation lasting about 25 years, Oracle and HP tried to obtain compatibility of the solutions. Oracle is the largest DBMS developer, HP - servers and storage systems. Oracle aims to become the supplier of complete solutions, and for this purpose last year the company announced acquisition of the supplier of servers of SUN Microsystems. The former head of HP Mark Hurd should become one of key figures in promotion of this strategy.

Recently similar dispute was settled by Oracle and IBM. It concerned Joanne Olsen, the former employee of IBM which passed to work into Oracle and also was connected with agreement breach, prohibiting to go to work in the competing company.

2004: Safra Catz is appointed the president

Safra Catz joined Oracle in April, 1999, and two years later she joined the companies the board.

The board member of the company since October, 2001.

The president of Oracle since January, 2004.

The chief financial officer of Oracle Corporation since November, 2005.

Notes