Oracle has hit back at shareholder claims that founder and chief Larry Ellison’s pay package is too generous, saying his compensation is “appropriate under the circumstances”. Like many tech titans, Ellison receives a nominal $1 pay cheque and has been known to refuse bonuses, but is nonetheless compensated by stock options. In …
While Oracle is by definition still highly profitable, their recent (6-12 months) results haven't met the high expectations investors are used to, so they've taken a bit of a media battering as a result.....
HOWEVER, the recent results have only been as good as they have been not because of excellent performance by the upper management, but because the employees on the ground have had jobs cut, roles moved to low cost countries, pay reviews halted, bonuses canned, travel banned, expenses cut, all in the pursuit of reducing costs. It's employees who are taking the hit, to maintain the share price and therefore Ellison's compensation.
I bet they didn't publicize that at OpenWorld.
hey, its his company
someone tell me why is this news?
did someone seriously expect him to get 'a bit' of compensation?
How do you measure the worth of a man, i mean he *is* a celebrity and it *is* his company, isn't it?
Re: hey, its his company
"and it *is* his company, isn't it?"
No, and it's not his piggy bank either.
Oracle is a publicly listed company and in theory belongs to the shareholders which may or may not include the directors.
Ellison may have started the company but as soon as he went to IPO then he lost some of the control over the way the company is run. In this case it seems that the board is fully on Ellison's side and only pays lip service to any shareholder concerns or wishes. Time for the shareholders to get off their arses and vote in a board more to the liking of the owners i.e. them.
no salary for lots of the employees
Its always the same, Larry wants to buy another island , sports car, fighter jet or boat but most of the employees get again NO salary raise at all.
Time to stop this and give something back to your hard working people Mr. Larry Laugher
Oracle has about 120000 employees thanks to various acquisitions. An average salary across all employees on all grades in all countries is a hard thing to come by, but $80,000 average salary + bonus + benefits is probably a reasonable ballpark. If Larry earns $76.9m as reported, that means he earns a thousand times more than the average employee, and he alone takes 0.8% of the company wage bill.
Sounds like a lot. The flip side of it is if he took no pay, you could only give every employee a £400 bonus. Better than a kick in the teeth, but hardly enough to retain someone.
Alternatively, you could give investors an additional 1.6 cents per share on their dividend each year. Given that the last quarterly dividend was 12 cents, that's actually not a bad increase.
He did get paid
Total Ellison Shares as of 28/12/12 : 1,112,434,580
Total dividend : $533,968,598.4
Source Yahoo finance.
Executive pay level are currently an abomination, especially in US corporations
I think Larry Ellison is probably set-up for life and doesn't need any more pointless toys.
Nothing can ever justify these pay levels, it is beyond greed. These are just people; this is more money than they can ever hope to use sensibly, so damned well pay the people who actually DO THE WORK which makes the money; if all corporations did this, then there would be a far more vibrant and profitable economy! Business owners used to comprehend this e.g. Henry Ford.
In many cases a manager should at most get a little more than those they manage, and in a lot of cases a lot less pay if not actively contributing to productivity, because they have a less challenging life!
Management should be seen as just a different role, not a step up a mythical promotion ladders; in fact many organisations would benefit from a flatter structure, with less clueless edicts from stagnant 'seniority', and more cooperation, kind of like the Japanese model, but better.
He needs ALL of it.
His other package is tiny.
Re: He needs ALL of it.
> His other package is tiny.
How do you...
...never mind, I don't want to know.
I heard Oracle are changing the company name
Because he's worth it!
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