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Main Article: Employees and Human Resources at Oracle
2019
Oracle pays former top SAP executive $2,000 an hour
On December 9, 2019, Oracle announced the entry of Vishal Sikka on the company's board of directors. Of the relevant documents provided to the Securities and Exchange Commission (SEC), the American manufacturer of corporate software entered into a three-month consulting services agreement with the former top manager of SAP.
According to Business Insider, Oracle paid Vishal Sikka $2,000 an hour to provide advice in the field of database management systems (DMS) and artificial intelligence. His work is designed for 20-50 hours a month, for which he can earn $40-100 thousand. Read more here.
Why payments to Oracle bosses fell 100 times
At the end of October 2019, it became known about a significant reduction in payments to Oracle top managers, since the companies failed to implement the plan for financial indicators.
For example, Oracle technical director Larry Ellison was paid only $1.6 million for fiscal year 2019. Moreover, almost all of this amount fell on the costs associated with ensuring the personal security of the co-founder of the American corporation. In 2018, he earned $108.9 million through receiving bonuses and stock options. Ellison's salary remained nominal - $1.
The compensation package of one of the two CEOs of Oracle Safra Katz in 2019 turned out to be about $966 thousand, of which $950 thousand is a salary. The base salary of a top manager has practically not grown since 2012, when Katz shared the position of head of the company with Mark Hurd.
The latter earned more than a colleague in a year - about $2.5 million. This included $1.5 million in company costs for security in the house and for public events and a salary of $950 thousand. In October 2019, Hurd died at the age of 62.
In 2018, Oracle gave Safra Katz and Mark Hurd approximately $108.3 million each.
Ellison, Hurd and Katz were not paid either a bonus or a share award. Some other directors received such bonuses. For example, Oracle Executive Vice President and General Counsel Dorian Daley, thanks to them, earned a total of $8 million in fiscal year 2019.
Executive Vice President and Chief Corporate Architect of Oracle Edward Skreven became the highest paid top manager at Oracle with an annual income of $34.2 million, which is almost three times more than in the 2018 reporting year.
Also in its reporting, Oracle announced payments to Vice Chairman of the Board of Directors Jeffrey Henley - $4.2 million at the end of 2019.[1]
One of the two CEOs of Oracle dies
On October 18, 2019, it became known about the death of Mark Hurd. He was 62 years old. Read more here.
2016: Ellison revenues - $41.5 million (-35%), Hurd and Katz - $41 million each (-23%)
In September 2016, Oracle revealed the income of its top managers. Payments to them decreased due to large bonuses a year earlier and a revision of the remuneration formation scheme.
According to Bloomberg, citing documents provided by Oracle to the US Securities and Exchange Commission (SEC), in fiscal year 2016, which ended at the end of May 2016, the earnings of co-founder Larry Ellison as chairman of the board of directors and technical director amounted to $41.5 million, which is 35% less than a year earlier. His salary remained symbolic - $1.
Safra Catz and Mark Hurd's compensation packages fell 23% to $41 million for each of Oracle's CEOs. This decline was largely due to the fact that in 2015, executives were given $9 million in shares for a joint appointment to the post of CEO. The basic salaries of Katz and Hurd amounted to $950 thousand each, which corresponds to the indicators of a year ago.
The documents for the SEC also say that in 2016, fiscal Larry Ellison spent an additional $1.5 million at the expense of the employer to ensure his own security. Similar expenses of Mark Hurd were measured at $176.2 thousand.
During the reporting year, the number of Oracle shares owned by Larry Ellison and pledged for loans increased by 15 million units and reached 315 million (in money it is about $12.4 billion). The state of the co-founder of the software corporation by September 23, 2016 is estimated at $43.1 billion, according to the Bloomberg billionaires index.
In September 2016, Oracle unveiled changes to pay practices. The company reduced the number of stock options for executives and began to pay rewards in the form of securities based on Oracle's financial performance. In addition, the term for the exercise of options by top managers was reduced by half to five years.[2]
2015
Ellison - $62.1, Hurd and Katz - $56.9 million each
September 25, 2015 it became known about the reduction in income of the highest paid top managers of Oracle. This is due to the fact that the company, instead of options, began to provide its executives with shares, payments on which depend on the producer's income.
At the end of fiscal year 2015, closed on May 31, 2015, Oracle founder Larry Ellison, who resigned as head of the company in 2014, taking the position of technical director, earned $62.1 million against $100 million a year earlier, according to the Bloomberg Pay index, whose authors track the income of the highest paid American top managers.
Payments to Mark Hurd and Safra Katz, who, after Ellison's resignation as CEO, divided this position among themselves, amounted to approximately $56.9 million, while in fiscal year 2014 it was about rewards exceeding $70 million.
Until the end of 2014, Larry Ellison received a symbolic salary ($1 per year), and most of the compensation package came from options. After his departure as CEO, the company introduced a stock payment system with circulation restrictions that are tied to the size of sales and operating cash flow in relation to competitors such as IBM, Intel and Salesforce. Payments on such securities are possible within four years, subject to the fulfillment of financial tasks, Bloomberg notes.
In fiscal 2015, Larry Ellison was given an option to purchase 3 million Oracle shares with a performance price of $38.89-40.47 against 7 million securities a year earlier. Options Safre Katz and Mark Hurd cut from 5 to 2.75 million shares. Previously, the average exercise price of options in Oracle was measured at $43.49.
The compensation packages of Safra Katz and Mark Hurd in fiscal 2015 included salaries of $950 thousand, as well as other payments of $20,795 and $22,253, respectively, which include legal expenses for helping to conduct political campaigns, etc.
Larry Ellison spent an additional $1.53 million at the expense of the employer to ensure the safety of his home. As of September 2015, the founder of Oracle has a fortune of about $40 billion, which allows him to be among the 10 richest people on the planet.[3]
Cutting options to top executives
On July 7, 2015, it became known about the reduction of stock options for Oracle top managers. Thus, the American corporation responded to the dissatisfaction of shareholders with the high incomes of senior employees.
According to The Wall Street Journal (WSJ), citing documents that Oracle provided to the US Securities and Exchange Commission (U.S. Securities and Exchange Commission), in fiscal year 2016 (started June 1, 2015) chief executive officers Safra Katz and Mark Hurd, as well as the founder and executive chairman of the company, Larry Ellison, received approximately the same number of shares in the options as before, but their execution period was halved - from 10 to 5 years.
As a result of this, the value of executive options has significantly decreased. For example, in the fiscal year ended May 31, 2014, Larry Ellison earned $65 million in options. A year later, this financial figure dropped to $46 million. In the summer of 2015, he received an option of 2.25 million shares, valued at $22 million. It's worth noting that over the years Ellison ran Oracle, he was considered one of the highest-paid CEOs in the United States.
The value of options for 2.25 million shares granted to Safra Katz and Mark Hurd in early July 2015 is estimated at $22 million each. A year earlier, the board issued 2.75 million shares to these directors, including one-time options from 500 thousand securities granted in September 2014 as a result of their promotion.
Stock options are the most common way to encourage American top executives. This financial instrument gives the right to buy or sell an asset at a predetermined price at a certain point in time.
WSJ observers note that shareholders and organizations that exercise corporate control have repeatedly criticized Oracle for excessively high payments to top managers. The decline in the value of options signals that the board has finally responded to complaints.[4]
Former US Secretary of Defense and CIA director joins board of directors
In January 2015, the Board of Directors of Oracle expanded the number of participants to 12, electing its new member - it was the former US Secretary of Defense, formerly Director of CRULeon Panetta Oracle[5]. All Oracle board members are elected for one year.
2010: Ex-HP chief Mark Hurd named Oracle president to replace Charles Philips
In September 2010, the former head of Hewlett-Packard, Mark Hurd, was admitted to the board of directors of Oracle and appointed president of this company. He reports to Oracle CEO Larry Ellison.
"Mark has done a brilliant job at HP and, I think, at Oracle he will achieve even greater results," the head of Oracle commented on the joining of his friend Heard. "There is no person in the IT industry with more appropriate skills for Oracle's chosen strategy than Mark."
By his chosen strategy, Ellison means integrating hardware and software solutions and releasing end-to-end enterprise products. Hurd's joining Oracle also welcomed Safra Catz, who also serves as president of Oracle. Together, they will be able to bypass IBM in the server and storage markets, Hurd said in an official statement.
A week after the news of Hurd's resignation, Oracle founder and head Larry Ellison sent a letter to The New York Times criticizing the behavior of HP's board of directors. "This is a cowardly decision that was made by the company's management, too much concerned about its reputation," the billionaire said, adding that all people and partners associated with HP will suffer from this act. HP is the world's largest manufacturer of personal computers, servers and storage systems.
Meanwhile, along with the appointment of Mark Hurd, Oracle announced the resignation of Charles Phillips, who, together with Safra Catz, is the second president of the corporation. Phillips, who joined Oracle in 2003, informed Ellison of his desire to leave the company last December, after which the latter asked him to stay until the acquisition of Sun Microsystems was completed. Recall that this was done in January 2010.
 | "Phillips will be missed along with his talent and leadership qualities," Ellison commented on his departure in an official release. |  |
The reason for Phillips' decision is not named.
On September 7, 2010, it was reported that Hewlett-Packard was suing its former head Mark Hurd the day after announcing his joining Oracle as president and board member. HP fears that through Hurd Oracle will be able to find out about confidential information. Moreover, the company is convinced that Hurd simply will not be able to perform his duties at Oracle well if he is not guided by the information received at the previous place of work. Hurd signed relevant trade secret agreements with HP in 2008, and then in 2009 and 2010. They oblige to report employment to a competing company at least a year earlier. Hurd was also obligated to provide the former employer with compelling safety arguments about HP's move to the new company, but did not.
Hurd was defended by Oracle CEO Larry Ellison, who had previously criticized Hurd's resignation, calling the decision made by HP's board of directors "cowardly." "Oracle has long considered HP to be an important partner," Ellison stated. - However, this vindictive lawsuit jeopardizes our relationship... In fact, HP's board is destroying the possibility of cooperation between our companies in the IT market. "
As part of a collaboration that lasted about 25 years, Oracle and HP sought compatibility with their solutions. Oracle is the largest developer of DBMS, HP - servers and storage systems. Oracle is committed to becoming a provider of end-to-end solutions, and it is for this purpose that the company announced last year the acquisition of server supplier Sun Microsystems. Former HP chief Mark Hurd should be one of the key figures in pushing this strategy.
Recently, a similar dispute was settled by Oracle and IBM. It concerned Joanne Olsen, a former IBM employee who went to work at Oracle, and was also associated with a violation of a contract prohibiting him from joining a rival company.
2004: Safra Katz named president
Safra Catz joined Oracle in April 1999, and two years later she joined the company's board of directors.
Member of the Board of Directors of the company since October 2001.
President of Oracle since January 2004.
Chief Financial Officer of Oracle Corporation since November 2005.
Notes
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