Ellison goes from zero to $900,000
Published: 09 Sep 2003 13:00 BST
Oracle chief executive Larry Ellison will receive a salary of $900,000 (£567,322) for fiscal 2004, marking the first time in three years he has received a salary, according to a proxy Oracle filed on Monday with the US Securities and Exchange Commission.
Ellison, who has also gone without a bonus since 2000, is also eligible for a bonus under the Executive Bonus Plan, which is subject to shareholder approval. Oracle investors will vote on the bonus plan and other issues during the company's annual meeting on 13 October. The exact amount of Ellison's bonus has not yet been determined, but the plan would allow for a maximum of $5m.
"The chief executive officer's compensation plan was intended to more closely align his compensation with the performance of our common stock. Consistent with this compensation plan, in fiscal year 2003, the chief executive officer received no salary or bonus," the proxy said.
Last week, Ellison became eligible for the salary as of 1 September. The salary will bolster the 900,000 options he was granted last July with a strike price of $12.60 a share. Oracle shares closed up 40 cents to end Monday's regular trading session at $13.48.
Although Ellison did not received a salary and bonus for three years, Oracle's board in June 1999 granted him an option to purchase 40 million shares with a strike price of $6.88 a share, adjusted for two 2-for-1 stock splits. The large stock grant was issued in fiscal 2000, in lieu of all salary, bonuses and option grants until fiscal 2004, according to the proxy.
Ellison currently owns a 26.4 percent stake in Oracle.
The company is also reporting its first-quarter earnings on Friday.
Did you find this article useful?
40 out of 93 people found this useful
Digg
Slashdot
Del.ici.ous
Stumble
Reddit
