Oracle’s top three executives will be getting less money, as the company tightens its purse strings.
The company is reducing the value of its share options, so while the executives will receive the same number of share options, the value will be considerably less.
In a filing on Tuesday it was revealed that the executives’ options will expire in five years, rather than the 10-year term which has been the norm for Oracle execs.
The effect of this will see the value of the option grant given to Larry Ellison cut by about two-thirds from its fiscal 2014.
The company has faced criticism from shareholders and corporate governance groups over the amounts that are paid to its top executives.
While this move will see Ellison and the other execs paid less, it is unlikely that you will see them busking for money in the street anytime soon.
Ellison was granted options on 2.25 million shares, which are valued at around $22 million. His options award is valued at $65 million for the fiscal year ended May 31, 2014.
The outspoken executive has been among the highest-paid U.S corportate executives for a number of years, having received the bulk of his compensation in the form of seven million stock options for the last eight years.
This number was reduced to three million shares last year, estimated at $46 million, with it later reduced to 2.25 million once he stepped aside as CEO.
Both Safra Catz and Mark Hurd, co-Chief Executives, were granted options on 2.25 million shares each last week, valued at around $22 million each.
