Feeds

Hurd to take $950,000 salary after Oracle pay cut

Shares and $10m bonus topper upper in play

The essential guide to IT transformation

Mark Hurd will take a 25 per cent pay cut to work for Larry Ellison — if HP fails in its legal maneuver to block the Oracle CEO's audacious hire.

Ellison has offered HP's former chief a salary of $950,000 as an Oracle president and board member — stratospheric by mortal standards, but down from Hurd's $1.27m take at HP.

Hurd can top-up, though, according to an Oracle SEC filing. He's eligible for a 2011 bonus of between $5m and up to $10m, plus he'll get 10,000 shares on joining, with a further 5,000 each year for the next five years, and with the ability to vest 25 per cent the following year.

That would give Hurd an additional $60,000 a year from now, should he cash in a quarter of his joining stock allocation based on Oracle's current share price.

Hurd would lead Oracle's worldwide sales, consulting, marketing, and support in return for this package. He takes over from outgoing co-president Charles Phillips.

Despite earning less than at HP, Hurd could still afford to get by, as he's expected to receive $40m in severance from HP.

While crazy money, such compensation is sane in the world of Oracle's management — if you slip on your reality-distortion goggles.

Ellison, the tech industry's best-remunerated chief executive and one of the best-rewarded in corporate America, last year pulled in a salary of $1m according to Forbes' annual tracking service. With options and other perks, Ellison was awarded $56.8m. It's a package structure that has caused some shareholder outrages in years past.

His remaining co-president, Safra Catz, is reported to be paid a salary of $800,000, with a performance-related bonus of $3.9m and options worth $31.7m.

Whether Hurd actually sees any of the money is now contingent on a California court, as HP is litigating to stop him from working for Oracle, saying he'd reveal trade secrets and confidential company information.

HP seems to be resting its case on the US doctrine of inevitable disclosure that's used by employers to enforce the non-disclosure clauses in an employee's contract. The doctrine states that no matter what, a former employee would use or reveal secrets from their previous employer either consciously or subconsciously in the course of their work.

HP and Oracle have a long-standing history of partnership on hardware and software, which was all cool and groovy until Oracle decided it could also do hardware by buying Sun Microsystems' servers and storage business. While Oracle is going after IBM, HP clearly feels Hurd can use his knowledge of its business to beat HP in competitive bids — to open and close deals with customers — and in terms of product development, sales, and marketing.

Unfortunately for HP, California courts have rejected the inevitable disclosure doctrine, finding that it would restrict employee mobility by creating an after-the-fact covenant. ®

Secure remote control for conventional and virtual desktops

More from The Register

next story
6 Obvious Reasons Why Facebook Will Ban This Article (Thank God)
Clampdown on clickbait ... and El Reg is OK with this
No, thank you. I will not code for the Caliphate
Some assignments, even the Bongster decline must
Kaspersky backpedals on 'done nothing wrong, nothing to fear' blather
Founder (and internet passport fan) now says privacy is precious
TROLL SLAYER Google grabs $1.3 MEEELLION in patent counter-suit
Chocolate Factory hits back at firm for suing customers
Mozilla's 'Tiles' ads debut in new Firefox nightlies
You can try turning them off and on again
Facebook, Google and Instagram 'worse than drugs' says Miley Cyrus
Italian boffins agree with popette's theory that haters are the real wrecking balls
Sit tight, fanbois. Apple's '$400' wearable release slips into early 2015
Sources: time to put in plenty of clock-watching for' iWatch
prev story

Whitepapers

Endpoint data privacy in the cloud is easier than you think
Innovations in encryption and storage resolve issues of data privacy and key requirements for companies to look for in a solution.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Advanced data protection for your virtualized environments
Find a natural fit for optimizing protection for the often resource-constrained data protection process found in virtual environments.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
Next gen security for virtualised datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.