Oracle CEO agrees to million dollar pay cut

 

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By Stuart Turton

Posted on 24 Aug 2009 at 08:06

Oracle chief executive Larry Ellison will draw a salary of just one dollar in 2010, down from the $1 million he's received in the past three years.

The cut was revealed in Oracle's filing with the Securities and Exchange Commission, and suggests the company is looking to bolster its cash reserves as the economy totters into recovery.

"The compensation committee recognises that Mr. Ellison has a significant equity interest in Oracle, but believes he should still receive annual compensation because Mr. Ellison plays an active and vital role in our operations, strategy and growth. Nevertheless, during fiscal 2010, Mr. Ellison agreed to decrease his annual salary to $1," Oracle said in the filing.

The filing notes that Ellison agreed to the pay cut, as well he might given how little material difference it will actually make. The $1 million wage paid to Ellison in 2009 accounted for only 1.2% of his total earnings anyway. Ninety-seven percent was in the form of stock, and the rest bonuses.

Despite the move, Ellison remains the world's fourth richest man after unloading $543.8 million worth of stock in 2008. He joins an exclusive club of one dollar executives, including Apple chief executive Steve Jobs and Google co-founders Sergey Brin and Larry Page.

The move should also appease shareholders who voiced their disapproval at a meeting last year, with one warning that Ellison risked becoming a "poster boy" for bloated executive salaries.