Oracle CEO paid too much, shareholders vote

Oracle CEO paid too much, shareholders vote

Summary: But the vote is non-binding, so Oracle's chief executive Larry Ellison can probably keep up the maintenance on that Hawaiian island he recently bought.

(Image: CNET)

Oracle's chief executive Larry Ellison is paid too much, according to a majority of shareholders, who on Thursday cast their ballots in a non-binding vote.

The vote, which does not require the company to take any action, mirrors a vote cast last year which came to the same conclusion. But it does highlight a concern among shareholders who are concerned about high executive pay, compared to the company's less than exemplary financial results.

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Oracle's fiscal third quarter earnings missed Wall Street's revenue estimates, but performed well in earnings-per-share.

Ellison is the U.S.' third richest man, worth $41 billion, after Bill Gates and Warren Buffett, according to Forbes' recent list of America's wealthiest. Ellison currently owns about one-quarter of the company he leads.

And doesn't he know it.

This year alone, 69-year-old Ellison bought the Hawaiian island of Lanai for a reported but unconfirmed $500 million, which comes with a "complementary" Four Seasons Hotel. Not content with that alone, he also bought a luxury Hawaiian airliner for an undisclosed amount — because, why not?

He also participates in the America's Cup competition, that saw the software giant build a sail boat which ultimately led Ellison and his team to victory earlier this year.

That said, Ellison still has a philanthropic nature. He claimed to have pledged years ago to give away about 95 percent of his wealth to charity. That would still leave him with close to $2 billion, though, so not all is lost. 

(via Reuters)

Topics: Enterprise Software, Mobility

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  • Corporate Ubermenschen

    Silly humans, Corporate Ubermenschen cannot be held to the same meaningless standards as mere mortals. Platitudes such as "The amount of money you make is related to how well you did your job" may sound logical, reasonable and even "fair" but that's because you are judging these Giants by inapplicable, secular, criteria. Does the field mouse have the right to criticize the Eagle for not soaring as high as he might? Is the amoeba justified in criticizing Stephen Hawking for a typo that might have found its way into his latest Astro-Physical publication? Would you deny God his yearly bonus, just because he created the majestic Rocky Mountains on one day, and Donal Trump on the other?

    No my friends, you are not worthy. Don't pretend that you are.
  • If I were an Oracle customer...

    I would be hot that the price of my database software includes the ridiculous amounts paid out to Larry Ellison.

    What did he do and what decisions did he make that any one of millions of other sensible, reasonable, less expensive managers wouldn't have done when faced with the same information?

    CEO compensation in America is obscene, and getting worse.
    • You can feel it

      Every time I have to use Oracle I can feel that not enough money is going into actual development. On the other hand having island is nice and yachts look lovely. Who really cares that Java sucks and database is PITA to use. F-ing peasants... :)
    • Uh...he started the company and grew it to what it is today.

      • Larry Ellison may have started Oracle but...

        The company he started did not get where it is on his efforts alone. That's what so poisonous about the CEO compensation issue. It's as if the CEO is the only one who's doing anything useful at the company, which we all know is total horse manure.

        Robin Williams once said that cocaine was Nature's way of telling you that you're making too much money. Maybe Oracle shareholders just sent that message to LE on his Hawaiian island. I expect we will see more such votes in the coming annual meeting cycle.
    • It is obscene

      Then again, I don't buy Oracle products and so it doesnt affect me. On the other hand, busy-body politicians rake in the cash and steal my money and there is nothing I can do about it.

      If Obamacare is so great, then how come Obama isnt forced to use it.
  • Larry On Oracle Pricing

    Pathetic earthlings. Hurling your bodies out into the void, without the slightest inkling of who or what is out here. If you had known anything about the true nature of the universe, anything at all, you would've hidden from it in terror.
    Alan Smithie
  • Pay?

    Most of his money comes not from his pay, but his stock. He should just take 1$ a year and keep control.
    • He does well off the stock

      Total Ellison Shares as of 28/12/12 : 1,112,434,580

      Dividened $0.48

      Total dividend : $533,968,598.4

      Source Yahoo finance.
      Alan Smithie
  • He will probably have to pay some attention to this

    Ignoring the holders of a majority of the shares in one's company isn't good for job security. I don't expect Ellison to be ousted, but he will probably have to make some concessions.
    John L. Ries
  • Larry Ellison compensates their employees rather poorly.

    I know several people employed at Oracle that have not received a raise and bonus for a long period of time. More and more of their IT wares are being farmed out to India and China.

    Cheap SOB :(
    • And I know people that are happy to work there

      Of course they arent paid as well as Elli, but then again they didnt create the business.
    • Hence His Nickname

      Ming The Merciless
      Alan Smithie