by Christopher Freeburn | October 3, 2013 12:03 pm
A shareholder rights group is pressuring Oracle (ORCL) over the hefty salary drawn by its founder and CEO Larry Ellison.
CtW Investment Group has criticized Ellison’s compensation package, which was valued at $78.4 million in the company’s last fiscal year. The group, which is not a direct Oracle shareholder, says it will line up support from institutional investors and labor groups to oppose the way Oracle calculates Ellison’s pay package, the Associated Press notes.
Oracle has faced shareholder anger of the size of Ellison’s pay before. At its last annual meeting, 59% of shareholders voted against a measure that would have supported the company’s current compensation formulas. Since the vote was non-binding, Oracle did not adjust its methods, though it did reduce Ellison’s current pay, which totaled $96.2 million in the prior year. He also turned down a $1.2 million bonus.
The company holds its next annual meeting on Oct. 31. Eleven board members are up for election during the meeting. The company sent a letter to CtW in which it justified its compensation calculations. A representative of CtW said that it was clear that Oracle wasn’t “willing to listen to the concerns of shareholders.” Oracle is scheduled to meet with CtW on Thursday.
Last month, Ellison ducked out of Oracle’s huge annual customer convention to watch his America’s Cup yacht-racing team win a series of key races. His team ultimately won the competition.
Shares of Oracle sank more than 1% in Thursday morning trading.
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