Feeds

Oracle suffers premature remuneration: Spaffs $900m on shareholders

Year's worth of dividends dished out early to avoid tax hike

The essential guide to IT transformation

Oracle is paying shareholders $867m in quarterly dividends early to beat a possible 2013 US tax hike.

The company declared on Monday an accelerated second, third and fourth quarter cash dividend of $0.18 per share of outstanding common stock.

The bonanza will be paid on 21 December 2012 instead of quarterly in 2013.

Oracle’s single largest shareholder is chief executive Larry Ellison, but Oracle said in a statement its alpha-male boss had not participated in discussions or the board vote on the matter.

At midnight on 31 December the US has its appointment with a fiscal cliff: that’s when tax cuts passed under former president George W Bush will expire, and agreed government spending cuts kick in. Negotiations over exactly what will change are still ongoing in Washington.

When the Bush-era tax cuts end, levies on dividends could jump, depending on one's income, from the six tax categories of 10, 15, 25, 28, 33 and 35 per cent to five categories of 15, 28, 31, 36 and 39.6.

Oracle is the latest US listed company to shunt forward dividend payments to avoid a tax hike for shareholders. Retail giant Wal-Mart is among those dumping barrel loads of cash on investors by paying out quarterly 2013 dividends early. ®

Next gen security for virtualised datacentres

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 to let stalkers unearth buried posts with mobe search
Prepare to HAUNT your pal's back catalogue
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

5 things you didn’t know about cloud backup
IT departments are embracing cloud backup, but there’s a lot you need to know before choosing a service provider. Learn all the critical things you need to know.
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.
Backing up Big Data
Solving backup challenges and “protect everything from everywhere,” as we move into the era of big data management and the adoption of BYOD.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
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?