Investors Oppose Oracle Corporation (NYSE:ORCL)’s CEO Larry Ellison’s Pay
In trying economic times, top executive salaries of many companies have come under scrutiny. In a similar occurrence, a majority of Oracle Corporation (NYSE:ORCL) shareholders opposed Larry Ellison, the Chief Executive Officer’s pay. This non-binding vote was cast on Thursday, post complaints that the 3rd richest man in the world makes just too much money in the face of the trying times.
Tough competition from smaller rivals
Oracle Corporation (NYSE:ORCL) has been struggling against smaller rivals for a long time now and shareholders feel that a lackluster performance from the company also necessitates that top leadership owe some responsibility for it and settle for slimmer remuneration. The company’s executive compensation policy faced a similar thumbs-down from shareholders in 2012. Though Oracle Corporation (NYSE:ORCL) is not typically required to make any changes, it definitely brings to the forefront the concerns that shareholders harbor about the ballooning pay that company executives get in the light of dismal financial performance.
Ellison is the co-founder of Oracle Corporation (NYSE:ORCL) and the company came into existence 4 decades ago. He has been trying very hard to fend-off aggressive but considerably smaller companies that offer internet-based products and software at prices that very naturally throw Oracle Corporation (NYSE:ORCL) backstage. George Conrades, Naomi Seligman and Bruce Chizen who are on the compensation committee of the board as well as many shareholders voted in support of the company’s directors. This is a non-binding vote.
In an initial count, over 1B votes were cast “for” the company’s executive compensation and in excess of 2B were against. Oracle Corporation (NYSE:ORCL) said the figures for votes on the board members were not available yet. CtW Investment Group, which is a major investment-advisory group, had goaded shareholders to vote against the company’s executive pay as well as on the directors on the company’s compensation committee. This group provides advice to union pension funds.