Feeds

Ellison to flog $150m in Oracle shares

Stock options for Owners

  • alert
  • submit to reddit

Secure remote control for conventional and virtual desktops

Stock options for owners - who needs them? Obviously Michael Dell, who trousered a couple of hundred million bucks through the sale of optioned stock at the beginning of January.

And now Larry Ellison, Oracle founder and gazillionare is getting in on the act, with plans to sell $150m worth of Oracle shares, bought through a "stock option exercise".

Ellison announced the proposed sale through a filing with the Securities and Exchange Commission on January 22. He gave notice that he planned to flog five million shares, worth around $30 each. The stock's estimated date of sale was Monday. It is not known how much he'll will make off the sale.

Ellison, who owns a quarter of the California-based company, has already sold more than 331,000 shares this month, valued at around $10.6 million. Last June he opted to be granted options for 20 million shares in lieu of salary and bonuses over the next few years.

Drew Cullen writes The compensation committees that agree stock option deals on this scale with owner/operators are doing a poor job on behalf of other shareholders. They should be fired.

Bill Gates, another multi-billionaire you may have heard off, does not take share options. Why? Because he is an owner.

Stock options, as capitalist hero Warren Buffet argues so succinctly, are compensation for employees - no more, no less. But when you heare the names "Ellison" and "Dell", do you think "wage slave". Of course not, they are owners in part (or in lot) of their respective companies - not in the wishy-washy "we reserve 10 per cent of the company's share capital for staff who we love and respect deeply".

No, Ellison and Dell are owners in the sense of owning huge amounts of stock and holding huge amounts of power in the companies that they founded and still run.

Capital appreciation from their shareholdings and a salary commensurate with the job they do should be reward enough. And please don't tell me that they need the incentive to do their jobs. Ego simply does not work like this. ®

Related Stories

Oracle hires former Clinton spin doctor
Ellison not dead and not leaving Oracle
Ellison richer than Gates?
Ellison: The ego has landed
Ellison laughing all the way to the bank
Oracle boss no cheat, jury rules

Beginner's guide to SSL certificates

Whitepapers

Go beyond APM with real-time IT operations analytics
How IT operations teams can harness the wealth of wire data already flowing through their environment for real-time operational intelligence.
Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
10 threats to successful enterprise endpoint backup
10 threats to a successful backup including issues with BYOD, slow backups and ineffective security.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
Security and trust: The backbone of doing business over the internet
Explores the current state of website security and the contributions Symantec is making to help organizations protect critical data and build trust with customers.