Feeds

Ellison to flog $150m in Oracle shares

Stock options for Owners

  • alert
  • submit to reddit

New hybrid storage solutions

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

The next step in data security

More from The Register

next story
Phones 4u slips into administration after EE cuts ties with Brit mobe retailer
More than 5,500 jobs could be axed if rescue mission fails
JINGS! Microsoft Bing called Scots indyref RIGHT!
Redmond sporran metrics get one in the ten ring
Driving with an Apple Watch could land you with a £100 FINE
Bad news for tech-addicted fanbois behind the wheel
Murdoch to Europe: Inflict MORE PAIN on Google, please
'Platform for piracy' must be punished, or it'll kill us in FIVE YEARS
Phones 4u website DIES as wounded mobe retailer struggles to stay above water
Founder blames 'ruthless network partners' for implosion
Found inside ISIS terror chap's laptop: CELINE DION tunes
REPORT: Stash of terrorist material found in Syria Dell box
Sony says year's losses will be FOUR TIMES DEEPER than thought
Losses of more than $2 BILLION loom over troubled Japanese corp
prev story

Whitepapers

Providing a secure and efficient Helpdesk
A single remote control platform for user support is be key to providing an efficient helpdesk. Retain full control over the way in which screen and keystroke data is transmitted.
WIN a very cool portable ZX Spectrum
Win a one-off portable Spectrum built by legendary hardware hacker Ben Heck
Saudi Petroleum chooses Tegile storage solution
A storage solution that addresses company growth and performance for business-critical applications of caseware archive and search along with other key operational systems.
Protecting users from Firesheep and other Sidejacking attacks with SSL
Discussing the vulnerabilities inherent in Wi-Fi networks, and how using TLS/SSL for your entire site will assure security.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.