Feeds

Oracle suffers premature remuneration: Spaffs $900m on shareholders

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

The Power of One Infographic

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. ®

Boost IT visibility and business value

More from The Register

next story
BBC goes offline in MASSIVE COCKUP: Stephen Fry partly muzzled
Auntie tight-lipped as major outage rolls on
You! Pirate! Stop pirating, or we shall admonish you politely. Repeatedly, if necessary
And we shall go about telling people you smell. No, not really
Airbus promises Wi-Fi – yay – and 3D movies (meh) in new A330
If the person in front reclines their seat, this could get interesting
UK Parliament rubber-stamps EMERGENCY data grab 'n' keep bill
Just 49 MPs oppose Drip's rushed timetable
There's NOTHING on TV in Europe – American video DOMINATES
Even France's mega subsidies don't stop US content onslaught
Samsung threatens to cut ties with supplier over child labour allegations
Vows to uphold 'zero tolerance' policy on underage workers
Dude, you're getting a Dell – with BITCOIN: IT giant slurps cryptocash
1. Buy PC with Bitcoin. 2. Mine more coins. 3. Goto step 1
ITC: Seagate and LSI can infringe Realtek patents because Realtek isn't in the US
Land of the (get off scot) free, when it's a foreign owner
prev story

Whitepapers

Seven Steps to Software Security
Seven practical steps you can begin to take today to secure your applications and prevent the damages a successful cyber-attack can cause.
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.
Designing a Defense for Mobile Applications
Learn about the various considerations for defending mobile applications - from the application architecture itself to the myriad testing technologies.
Build a business case: developing custom apps
Learn how to maximize the value of custom applications by accelerating and simplifying their development.
Consolidation: the foundation for IT and business transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.